Sturm Ruger & Company Inc (RGR)

Short-term

Turnover ratios

The activity ratios for Sturm Ruger & Company Inc show varying trends over the periods analyzed:

1. Inventory Turnover:
- The inventory turnover ratio has been gradually declining over time, indicating that Sturm Ruger is taking longer to sell its inventory.
- A high inventory turnover ratio is generally preferred as it signifies efficient inventory management and faster sales.

2. Receivables Turnover:
- The data shows that receivables turnover was not available for most of the periods analyzed, indicating a lack of detailed information on the company's efficiency in collecting receivables.
- However, starting from December 31, 2021, there is a consistent trend of improvement in the receivables turnover ratio, suggesting better management of accounts receivable.

3. Payables Turnover:
- The payables turnover ratio was also not available for most of the periods, except for December 31, 2020, and onwards.
- The data indicates a consistent payables turnover ratio from December 31, 2021, to December 31, 2024, which shows how efficiently Sturm Ruger is managing its accounts payable.

4. Working Capital Turnover:
- The working capital turnover ratio has shown a fluctuating trend over the periods analyzed.
- A higher working capital turnover ratio signifies the company is generating revenue more efficiently with its working capital.

In conclusion, while there are challenges such as declining inventory turnover and incomplete data for receivables and payables turnover, Sturm Ruger seems to be improving its accounts receivable and accounts payable management based on the available data. Monitoring these activity ratios will help assess the company's operational efficiency and financial performance.

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Average number of days

Based on the activity ratios provided for Sturm Ruger & Company Inc, let's analyze the key metrics:

1. Days of Inventory on Hand (DOH):
- The company's DOH increased steadily from March 31, 2020, to December 31, 2024, indicating a lengthening period of time it took to sell its inventory.
- The DOH ranged from a low of 13.21 days on June 30, 2020, to a high of 71.02 days on December 31, 2023, with a notable fluctuation during the period.
- The trend suggests inefficiencies in managing inventory levels and potential liquidity challenges due to tied-up capital.

2. Days of Sales Outstanding (DSO):
- DSO data was missing for various quarters, starting from March 31, 2020, to March 31, 2022.
- The DSO became available starting December 31, 2021, and showed a mix of increasing and decreasing trends thereafter.
- Notably, DSO increased to 45.75 days on December 31, 2024, indicating that the company took longer to collect its accounts receivable, potentially affecting cash flow.

3. Number of Days of Payables:
- Similar to DSO, data for the number of days of payables was missing for multiple periods, indicating a lack of consistency in reporting.
- When available, the company managed to keep its payables period relatively low, ranging from 9.88 days on December 31, 2021, to 11.66 days on December 31, 2022.
- This suggests that Sturm Ruger & Company Inc may have efficient payment practices, potentially benefiting from favorable credit terms with suppliers.

In conclusion, Sturm Ruger & Company Inc experienced fluctuations in its activity ratios over the analyzed periods. While managing payables efficiently, the company faced challenges in inventory turnover and accounts receivable collection, which could impact its working capital management and overall financial performance.

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Long-term

Sturm Ruger & Company Inc's fixed asset turnover ratio has shown fluctuations over the past few years, ranging from a low of 5.93 in March 2020 to a peak of 11.34 in September 2021. This ratio measures how efficiently the company is utilizing its fixed assets to generate sales. The upward trend from 2020 to 2021 indicates an improved efficiency in utilizing fixed assets. However, there has been some decline in the fixed asset turnover ratio since September 2021, indicating a potential decrease in the company's ability to generate sales from its fixed assets.

On the other hand, the total asset turnover ratio has also fluctuated during the same period, with values ranging from 1.16 in March 2020 to 1.75 in June 2021 before declining to 1.39 in December 2024. This ratio reflects the efficiency of the company in generating sales from all its assets. The overall trend shows some volatility in total asset turnover, with a more pronounced decline in recent periods, suggesting a potential decrease in the company's ability to generate sales from its total assets.

In conclusion, while the fixed asset turnover ratio for Sturm Ruger & Company Inc has shown some improvement followed by a decline, the total asset turnover ratio has demonstrated volatility with a more significant decrease in recent years. These trends indicate fluctuations in the efficiency of the company in utilizing both fixed and total assets to generate revenue.