Sturm Ruger & Company Inc (RGR)
Payables 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 |
| Payables | US$ in thousands | 11,100 | 13,281 | 12,209 | 12,796 | 8,339 |
| Payables turnover | 36.95 | 31.30 | 36.95 | 29.50 | 37.29 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $410,148K ÷ $11,100K
= 36.95
The payables turnover ratio for Sturm, Ruger & Co., Inc. has fluctuated over the past five years. In 2023, the company's payables turnover ratio was 36.95, indicating that the company paid off its accounts payable approximately 36.95 times during the year. This is an improvement from the prior year, where the ratio was 31.30.
A higher payables turnover ratio generally indicates that a company is effectively managing its accounts payable and is paying off its suppliers more frequently. This could signify strong supplier relationships and potentially favorable credit terms.
However, it's important to note that a very high payables turnover ratio could also suggest that a company is overly aggressive in managing its payables, possibly straining relationships with suppliers or risking cash flow issues.
Overall, Sturm, Ruger & Co., Inc.'s payables turnover ratio has shown variability but has generally been at healthy levels over the past five years, indicating efficient management of accounts payable. Further analysis of the company's financial performance and cash flow management would provide a more comprehensive understanding of its overall financial health.
Peer comparison
Dec 31, 2023