Sturm Ruger & Company Inc (RGR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 4.29 | 2.22 | 4.26 | 2.87 | 4.07 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $271,395K ÷ $63,195K
= 4.29
The current ratio of Sturm, Ruger & Co., Inc. has exhibited fluctuations over the past five years. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position.
In 2023, the current ratio surged to 4.29, significantly higher compared to the prior year. This substantial increase suggests that Sturm, Ruger & Co., Inc. has a considerable amount of current assets relative to its current liabilities, portraying a robust ability to cover short-term obligations comfortably.
In 2022, the current ratio was notably lower at 2.22, indicating a decrease in liquidity compared to the preceding year. This decline may signal potential difficulties in meeting short-term obligations with current assets.
The ratios for 2021, 2020, and 2019 stood at 4.26, 2.87, and 4.07 respectively. These ratios indicate that the company had a comfortable liquidity position during those years, with sufficient current assets to cover short-term liabilities without much strain.
Overall, the current ratio trend for Sturm, Ruger & Co., Inc. shows variability over the years, with periods of strong liquidity followed by decreases. It is essential for the company to monitor and manage its current assets and liabilities effectively to ensure a healthy liquidity position in the future.
Peer comparison
Dec 31, 2023