Sturm Ruger & Company Inc (RGR)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 410,148 | 421,458 | 425,814 | 418,257 | 415,757 | 410,696 | 423,619 | 447,835 | 451,179 | 451,635 | 432,744 | 401,608 | 377,427 | 352,719 | 333,298 | 317,146 | 310,958 | 317,874 | 329,595 | 347,380 |
| Inventory | US$ in thousands | 79,810 | 79,271 | 69,416 | 61,955 | 64,993 | 61,505 | 57,145 | 46,914 | 43,850 | 39,115 | 31,987 | 28,754 | 29,077 | 13,579 | 12,066 | 18,289 | 28,301 | 32,981 | 41,467 | 36,482 |
| Inventory turnover | 5.14 | 5.32 | 6.13 | 6.75 | 6.40 | 6.68 | 7.41 | 9.55 | 10.29 | 11.55 | 13.53 | 13.97 | 12.98 | 25.98 | 27.62 | 17.34 | 10.99 | 9.64 | 7.95 | 9.52 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $410,148K ÷ $79,810K
= 5.14
Sturm, Ruger & Co., Inc.'s inventory turnover has displayed fluctuations over the past eight quarters. The trend indicates that the company's inventory turnover ratio peaked in Q1 2022 at 9.55 and has gradually declined since then.
A high inventory turnover ratio is generally preferred as it suggests that the company is efficiently managing its inventory and swiftly converting it into sales. In this case, the decline in the inventory turnover ratio could indicate a slowdown in sales relative to the level of inventory held by the company.
The trend of decreasing inventory turnover ratios over the past quarters may imply that Sturm, Ruger & Co., Inc. could be facing challenges in effectively managing its inventory levels or may be experiencing difficulties in aligning inventory levels with sales demand. It could also suggest that the company's production levels might be outpacing actual sales, leading to excess inventory.
Further analysis and comparison with industry benchmarks would be necessary to gain a more comprehensive understanding of the efficiency of Sturm, Ruger & Co., Inc.'s inventory management practices and how they may be impacting the company's overall financial performance.
Peer comparison
Dec 31, 2023
Dec 31, 2023