Sturm Ruger & Company Inc (RGR)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 535,643 | 543,767 | 595,842 | 730,736 | 568,868 |
| Receivables | US$ in thousands | 67,145 | 59,864 | 65,449 | 57,036 | 57,876 |
| Receivables turnover | 7.98 | 9.08 | 9.10 | 12.81 | 9.83 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $535,643K ÷ $67,145K
= 7.98
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. Looking at the data for Sturm Ruger & Company Inc, we can see a trend in the receivables turnover ratio over the past few years:
- As of December 31, 2020, the receivables turnover ratio was 9.83, indicating that the company collected its accounts receivable nearly 10 times during the year.
- By December 31, 2021, the ratio had improved to 12.81, showing that the company was able to collect payments from customers even more effectively.
- However, in the following years, the receivables turnover ratio decreased, falling to 9.10 by December 31, 2022, and slightly dropping further to 9.08 by December 31, 2023.
- As of December 31, 2024, the ratio decreased to 7.98, showing a decline in the efficiency of collecting accounts receivable compared to the previous years.
Overall, while the receivables turnover ratio initially improved, it started to decline in the later years, which may suggest potential issues with the company's credit policies, collection procedures, or the quality of its accounts receivable. Monitoring this ratio over time can provide insights into Sturm Ruger & Company Inc's effectiveness in managing its receivables and financial health.
Peer comparison
Dec 31, 2024