Sturm Ruger & Company Inc (RGR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.29 | 4.48 | 4.48 | 4.29 | 2.22 | 5.83 | 6.13 | 5.08 | 4.26 | 3.84 | 3.67 | 3.45 | 2.87 | 3.16 | 3.86 | 4.23 | 4.07 | 4.72 | 5.13 | 4.08 |
| Quick ratio | 2.81 | 2.94 | 3.18 | 2.11 | 1.78 | 3.57 | 3.83 | 3.20 | 3.61 | 2.40 | 2.23 | 2.00 | 1.73 | 1.98 | 2.97 | 3.00 | 2.69 | 2.82 | 3.07 | 2.43 |
| Cash ratio | 1.86 | 1.96 | 2.30 | 2.11 | 1.38 | 3.57 | 3.83 | 3.20 | 2.87 | 2.40 | 2.23 | 2.00 | 1.73 | 1.98 | 2.97 | 3.00 | 2.69 | 2.82 | 3.07 | 2.43 |
Sturm, Ruger & Co., Inc.'s liquidity ratios indicate strong short-term financial health over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has steadily increased from 2.22 in Q4 2022 to 4.29 in Q4 2023. This upward trend suggests that the company has sufficient current assets to meet its short-term obligations.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also shows an improvement over the same period. The quick ratio increased from 1.82 in Q4 2022 to 3.03 in Q4 2023, indicating that the company's short-term liquidity position has strengthened.
The cash ratio, which assesses a company's ability to cover its short-term obligations using only its cash and cash equivalents, has also shown positive movement. Sturm, Ruger & Co., Inc.'s cash ratio has progressively increased from 1.42 in Q4 2022 to 2.08 in Q4 2023, signaling an enhancement in the company's cash position and its capacity to meet immediate financial commitments.
Overall, the upward trajectory of Sturm, Ruger & Co., Inc.'s liquidity ratios suggests an improvement in the company's ability to manage short-term financial obligations efficiently and indicates a solid foundation for its financial viability.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 101.33 | 107.53 | 92.85 | 54.07 | 85.49 | 54.66 | 49.24 | 38.24 | 54.09 | 31.61 | 26.98 | 26.13 | 15.74 | 14.05 | 13.21 | 21.05 | 23.43 | 37.87 | 45.92 | 38.33 |
Sturm, Ruger & Co., Inc.'s cash conversion cycle has shown some fluctuation over the past eight quarters. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In Q4 2023, the cash conversion cycle was 101.33 days, which was a slight improvement from Q3 2023 when it stood at 107.53 days. However, compared to the previous year's Q4 2022 figure of 85.49 days, the cycle has increased, indicating a lengthening in the time taken to convert investments into cash.
Looking at the trend over the quarters, there seems to be some seasonality in the company's cash conversion cycle, with fluctuations occurring between the high and low points. The cycle ranged from a low of 73.74 days in Q1 2022 to a high of 107.53 days in Q3 2023.
Overall, Sturm, Ruger & Co., Inc. should aim to optimize its inventory management, accounts receivable, and accounts payable processes to shorten its cash conversion cycle. A shorter cycle means the company can improve its liquidity position and potentially generate cash more efficiently from its operating activities.