Sturm Ruger & Company Inc (RGR)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 543,767 | 595,842 | 730,736 | 568,868 | 410,506 |
| Total current assets | US$ in thousands | 271,395 | 361,838 | 328,733 | 234,373 | 249,316 |
| Total current liabilities | US$ in thousands | 63,195 | 163,067 | 77,109 | 81,761 | 61,244 |
| Working capital turnover | 2.61 | 3.00 | 2.90 | 3.73 | 2.18 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $543,767K ÷ ($271,395K – $63,195K)
= 2.61
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates that the company is able to efficiently manage its working capital to drive sales.
Looking at the historical data for Sturm, Ruger & Co., Inc., the working capital turnover has shown some fluctuations over the past five years. In 2023, the working capital turnover decreased to 2.61 from 3.00 in 2022, suggesting a slight decrease in efficiency in utilizing working capital to generate sales.
Comparing the 2023 ratio to previous years, it is lower than the 2020 and 2021 ratios but higher than the 2019 ratio. This indicates that in 2023, the company may have become slightly less efficient in converting its working capital into sales compared to 2020 and 2021, but more efficient compared to 2019.
Overall, while there has been variability in the working capital turnover ratio for Sturm, Ruger & Co., Inc. over the five-year period, the company has generally maintained an acceptable level of efficiency in managing its working capital to generate sales revenue. It would be beneficial for stakeholders to monitor this ratio in the future to ensure the company continues to effectively utilize its working capital.
Peer comparison
Dec 31, 2023