Sturm Ruger & Company Inc (RGR)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 421,228 | 406,999 | 403,549 | 406,598 | 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 |
| Inventory | US$ in thousands | 76,486 | 76,036 | 73,332 | 68,496 | 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 |
| Inventory turnover | 5.51 | 5.35 | 5.50 | 5.94 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $421,228K ÷ $76,486K
= 5.51
Sturm Ruger & Company Inc's inventory turnover has experienced a decline over the years, reflecting a decreasing efficiency in managing its inventory. The company's inventory turnover ratio has decreased from 17.34 in March 2020 to 5.51 in December 2024. This indicates that the company takes longer to sell its inventory compared to earlier periods.
The downward trend in inventory turnover may raise concerns about overstocking or obsolete inventory, which could tie up working capital and lead to potential markdowns or write-offs in the future. Additionally, a lower inventory turnover ratio may also signify weakening demand for the company's products or inefficiencies in production and distribution.
It is essential for Sturm Ruger & Company Inc to closely monitor and optimize its inventory management practices to improve its inventory turnover ratio, enhance liquidity, and mitigate the risks associated with excess inventory levels. By implementing effective inventory control measures, the company can better align its inventory levels with customer demand and improve its overall operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024