Sturm Ruger & Company Inc (RGR)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 543,767 | 562,374 | 580,871 | 578,720 | 595,842 | 614,659 | 653,515 | 712,934 | 730,736 | 731,955 | 699,414 | 629,606 | 568,868 | 504,747 | 454,041 | 420,106 | 410,506 | 426,488 | 446,434 | 478,516 |
| Total current assets | US$ in thousands | 271,395 | 273,960 | 268,061 | 263,977 | 361,838 | 351,026 | 334,077 | 336,253 | 328,733 | 308,859 | 285,643 | 252,248 | 234,373 | 212,974 | 294,939 | 264,618 | 249,316 | 229,925 | 220,485 | 226,717 |
| Total current liabilities | US$ in thousands | 63,195 | 61,187 | 59,894 | 61,594 | 163,067 | 60,202 | 54,495 | 66,177 | 77,109 | 80,387 | 77,729 | 73,045 | 81,761 | 67,392 | 76,313 | 62,492 | 61,244 | 48,712 | 42,976 | 55,567 |
| Working capital turnover | 2.61 | 2.64 | 2.79 | 2.86 | 3.00 | 2.11 | 2.34 | 2.64 | 2.90 | 3.20 | 3.36 | 3.51 | 3.73 | 3.47 | 2.08 | 2.08 | 2.18 | 2.35 | 2.51 | 2.80 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $543,767K ÷ ($271,395K – $63,195K)
= 2.61
Sturm, Ruger & Co., Inc.'s working capital turnover has shown some fluctuations over the past eight quarters. The working capital turnover ratio measures how efficiently a company is able to utilize its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is able to generate more sales revenue from its working capital.
Looking at the trend in Sturm, Ruger & Co., Inc.'s working capital turnover ratio, we can see that it has generally been decreasing over the past quarters, reaching a low of 2.11 in Q3 2022 before experiencing a slight recovery in the most recent quarters. This trend suggests that the company may have been less efficient in utilizing its working capital to generate sales revenue during the period of decreasing ratios.
Overall, although the working capital turnover ratio has shown some variability, it is important for Sturm, Ruger & Co., Inc. to monitor and potentially improve its working capital management efficiency to ensure optimal utilization of resources and to enhance its overall financial performance.
Peer comparison
Dec 31, 2023