Sturm Ruger & Company Inc (RGR)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 10,028 | 15,174 | 65,173 | 21,044 | 20,147 |
| Short-term investments | US$ in thousands | 95,453 | 102,485 | 159,132 | 199,971 | 121,007 |
| Total current liabilities | US$ in thousands | 60,809 | 63,195 | 163,067 | 77,109 | 81,761 |
| Cash ratio | 1.73 | 1.86 | 1.38 | 2.87 | 1.73 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($10,028K
+ $95,453K)
÷ $60,809K
= 1.73
The cash ratio of Sturm Ruger & Company Inc has fluctuated over the past five years. In December 2020, the company had a cash ratio of 1.73, indicating that it had $1.73 in liquid assets for every $1 of current liabilities. This ratio increased significantly to 2.87 by December 2021, suggesting improved liquidity and the ability to cover short-term obligations comfortably.
However, in December 2022, the cash ratio declined to 1.38, which may raise some concerns about the company's ability to meet its current liabilities using its cash and cash equivalents alone. The ratio slightly improved to 1.86 by December 2023, but it remained below the levels seen in 2021.
As of December 31, 2024, the cash ratio reverted back to 1.73, the same level as in 2020. While the company has maintained a reasonable level of liquidity over the years, it is essential for stakeholders to monitor this ratio closely to ensure that Sturm Ruger & Company Inc can manage its short-term obligations effectively.
Peer comparison
Dec 31, 2024