Sturm Ruger & Company Inc (RGR)
Payables 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 |
| 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 (ttm) ÷ Payables
= $410,148K ÷ $11,100K
= 36.95
The payables turnover ratio for Sturm, Ruger & Co., Inc. in Q4 2023 was 36.95. This indicates that the company converted its accounts payable into purchases or expenses nearly 37 times during the quarter.
Comparing this to Q4 2022, where the payables turnover was 31.30, we see an improvement in the efficiency of Sturm, Ruger & Co., Inc.'s payables management. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which could be a positive sign of strong liquidity and effective management of its trade credit obligations.
However, it should be noted that without data for the other quarters of 2023, a full assessment of the trend and consistency of this improvement in payables turnover cannot be made. It would be beneficial to track this ratio over time to understand the company's payment practices and how efficiently it is managing its accounts payable.
Peer comparison
Dec 31, 2023