Sturm Ruger & Company Inc (RGR)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 410,148 | 415,757 | 451,179 | 377,427 | 310,958 |
| Inventory | US$ in thousands | 79,810 | 64,993 | 43,850 | 29,077 | 28,301 |
| Inventory turnover | 5.14 | 6.40 | 10.29 | 12.98 | 10.99 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $410,148K ÷ $79,810K
= 5.14
Sturm, Ruger & Co., Inc.'s inventory turnover ratio has exhibited a declining trend over the past five years. The ratio stood at 5.14 in 2023, down from 6.40 in 2022, indicating a decrease in the frequency with which the company is able to sell and replace its inventory during the year. This decline suggests a potential slowdown in sales relative to the level of inventory held by the company.
Although the 2023 inventory turnover ratio of 5.14 is lower than the previous year, it is still within an acceptable range for the industry. A lower inventory turnover ratio could indicate inefficiencies in inventory management, excess inventory levels, or slowing demand for the company's products.
Overall, Sturm, Ruger & Co., Inc. should closely monitor its inventory turnover ratio and take appropriate actions to optimize its inventory management processes and ensure efficient use of its resources. This could involve implementing better inventory control systems, streamlining production processes, or adjusting marketing strategies to align inventory levels with customer demand.
Peer comparison
Dec 31, 2023