Sturm Ruger & Company Inc (RGR)

Sturm Ruger & Company Inc's liquidity ratios show a generally strong financial position over the years. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has exhibited fluctuation but has remained above 2. This suggests the company has sufficient current assets to meet its current obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also reflects a healthy liquidity position for the company. While it has fluctuated, the ratios have consistently been above 1, indicating that Sturm Ruger & Company Inc can meet its short-term liabilities without relying on inventory liquidation.

Furthermore, the cash ratio, which measures the company's ability to cover current liabilities with only cash and cash equivalents, has also shown a stable and sound liquidity position. The ratios have stayed above 1 over the years, indicating that the company maintains a strong ability to pay off current obligations with readily available cash.

Overall, based on the current, quick, and cash ratios, Sturm Ruger & Company Inc appears to have maintained a robust liquidity position, which is vital for meeting short-term financial obligations and unexpected cash needs.

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Additional liquidity measure

The cash conversion cycle of Sturm Ruger & Company Inc has shown an upward trend over the years, increasing from 52.88 days at the end of 2020 to 100.62 days by the end of 2024. This indicates that the company is taking longer to convert its inventory into cash. A higher cash conversion cycle suggests inefficiencies in managing inventory, collecting receivables, or paying suppliers. It may also imply that liquidity and working capital management could be areas of concern for the company. Further analysis of the components contributing to this metric would be necessary to identify specific areas for improvement and optimize cash flow efficiency.