Sturm Ruger & Company Inc (RGR)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 421,228 | 410,148 | 415,757 | 451,179 | 377,427 |
| Payables | US$ in thousands | 13,170 | 11,100 | 13,281 | 12,209 | 12,796 |
| Payables turnover | 31.98 | 36.95 | 31.30 | 36.95 | 29.50 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $421,228K ÷ $13,170K
= 31.98
The payables turnover ratio reflects how efficiently Sturm Ruger & Company Inc manages its accounts payable. Over the past five years, there has been a fluctuation in the payables turnover ratio:
- In 2020, the payables turnover ratio was 29.50, indicating that the company paid its suppliers approximately 29.50 times during the year.
- By the end of 2021, the ratio improved to 36.95, suggesting that the company was paying its suppliers more frequently, which could be a positive sign of effective cash management.
- However, in 2022, the payables turnover ratio decreased to 31.30, indicating a slight decrease in payment frequency to suppliers.
- Subsequently, in 2023, the ratio improved once again to 36.95, matching the previous high in 2021.
- By the end of 2024, the payables turnover ratio fell slightly to 31.98, showing a decreased payment frequency compared to the previous year.
Overall, the company's payables turnover has shown some variability, with periods of improvement and slight declines. It is essential for the company to analyze the reasons behind these fluctuations to ensure effective management of its accounts payable and maintain good relationships with suppliers.
Peer comparison
Dec 31, 2024