Sturm Ruger & Company Inc (RGR)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 36.95 | 31.30 | 36.95 | 29.50 | 37.29 | |
| Number of days of payables | days | 9.88 | 11.66 | 9.88 | 12.37 | 9.79 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 36.95
= 9.88
Sturm, Ruger & Co., Inc.'s number of days of payables has shown fluctuations over the past five years. The company's payables turnover cycle has ranged from a low of 9.79 days in 2019 to a high of 12.37 days in 2020. This indicates that the company takes an average of around 10 to 12 days to pay its suppliers for goods or services purchased on credit.
The decreasing trend in the number of days of payables from 2020 to 2021 and then a slight increase in 2022 followed by a decrease again in 2023 could suggest improvements in the company's working capital management efficiency or changes in its payment terms with suppliers. However, further investigation would be needed to determine the underlying reasons behind these fluctuations.
Overall, Sturm, Ruger & Co., Inc.'s number of days of payables provides insight into how efficiently the company manages its accounts payable and cash flow by balancing the need to pay suppliers promptly while also maximizing available working capital.
Peer comparison
Dec 31, 2023