Sturm Ruger & Company Inc (RGR)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 535,643 | 543,767 | 595,842 | 730,736 | 568,868 |
| Property, plant and equipment | US$ in thousands | 71,249 | 71,534 | 76,853 | 73,631 | 70,733 |
| Fixed asset turnover | 7.52 | 7.60 | 7.75 | 9.92 | 8.04 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $535,643K ÷ $71,249K
= 7.52
The fixed asset turnover ratio measures the efficiency with which Sturm Ruger & Company Inc utilizes its fixed assets to generate sales.
Based on the provided data:
- The fixed asset turnover ratio has been steadily increasing from 8.04 in December 2020 to 9.92 in December 2021, indicating an improved efficiency in generating sales from fixed assets.
- However, there was a slight decrease in the fixed asset turnover ratio in December 2022 to 7.75. This suggests that there was a decrease in sales generated by the fixed assets compared to the previous year.
- The trend continued with a further decrease in the fixed asset turnover ratio to 7.60 in December 2023 and 7.52 in December 2024. This indicates a potential decline in the company's ability to efficiently utilize its fixed assets to generate revenue in those years.
Overall, fluctuations in the fixed asset turnover ratio for Sturm Ruger & Company Inc suggest varying levels of effectiveness in utilizing fixed assets to generate sales over the years, with the ratio peaking in 2021 and showing some decline thereafter. A more in-depth analysis of the underlying reasons for these fluctuations would be necessary to fully understand the company's efficiency in this aspect.
Peer comparison
Dec 31, 2024