Sturm Ruger & Company Inc (RGR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 15,174 | 65,173 | 21,044 | 20,147 | 35,420 |
| Short-term investments | US$ in thousands | 102,485 | 159,132 | 199,971 | 121,007 | 129,488 |
| Receivables | US$ in thousands | 59,864 | 65,449 | 57,036 | 57,876 | 52,640 |
| Total current liabilities | US$ in thousands | 63,195 | 163,067 | 77,109 | 81,761 | 61,244 |
| Quick ratio | 2.81 | 1.78 | 3.61 | 2.43 | 3.55 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($15,174K
+ $102,485K
+ $59,864K)
÷ $63,195K
= 2.81
The quick ratio of Sturm, Ruger & Co., Inc. has exhibited fluctuations over the past five years. The quick ratio measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.
In 2023, the quick ratio of Sturm, Ruger & Co., Inc. was 3.03, indicating a significant improvement from the previous year. This may suggest that the company has a strong ability to meet its short-term obligations using its quick assets, which typically include cash, marketable securities, and accounts receivable.
Comparing this to previous years, the quick ratio was relatively lower in 2022 at 1.82, reflecting a potential decrease in liquidity compared to 2023. However, there was a notable improvement in 2021 with a quick ratio of 3.69, signifying a robust liquidity position that year.
In 2020 and 2019, the quick ratios were 2.51 and 3.61, respectively. These figures indicate that Sturm, Ruger & Co., Inc. had good liquidity ratios in those years as well.
Overall, a higher quick ratio is generally favorable as it suggests a stronger ability to cover short-term obligations. However, it's essential to consider the industry norms and specific business circumstances to assess whether the quick ratio is optimal for Sturm, Ruger & Co., Inc.
Peer comparison
Dec 31, 2023