Sturm Ruger & Company Inc (RGR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.36% | 24.57% | 30.22% | 38.26% | 33.65% |
| Operating profit margin | 5.91% | 9.58% | 17.36% | 27.80% | 20.94% |
| Pretax margin | 7.05% | 10.82% | 18.17% | 28.27% | 21.27% |
| Net profit margin | 5.71% | 8.87% | 14.82% | 21.33% | 15.89% |
Sturm Ruger & Company Inc's profitability ratios based on the provided data indicate a fluctuating trend over the years. The gross profit margin, which represents the percentage of revenue that translates into gross profit after accounting for the cost of goods sold, has shown a decline from 38.26% in 2021 to 21.36% in 2024. This downward trend suggests potential challenges in managing the cost of sales efficiently.
Moving on to the operating profit margin, which indicates the company's ability to generate profits from its core operations, the figures have decreased from 27.80% in 2021 to 5.91% in 2024. This decline highlights a significant reduction in profitability at the operational level, possibly indicating inefficiencies in managing operating expenses.
The pretax margin, representing the percentage of each dollar of revenue that translates into pre-tax profit, has also exhibited a downward trajectory, decreasing from 28.27% in 2021 to 7.05% in 2024. This trend suggests a decline in the company's ability to generate profits before accounting for taxes, signaling potential challenges in controlling costs and expenses.
Lastly, the net profit margin, which reflects the percentage of revenue that remains as net income after deducting all expenses, has shown a sharp decrease from 21.33% in 2021 to 5.71% in 2024. This substantial decline indicates a notable decrease in profitability on a net income basis, possibly reflecting challenges in managing overall expenses and ensuring adequate profitability.
In conclusion, the analysis of Sturm Ruger & Company Inc's profitability ratios based on the provided data underscores a concerning trend of declining profitability margins across gross, operating, pre-tax, and net profit levels, suggesting potential challenges in cost management and overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.24% | 13.06% | 21.34% | 45.92% | 34.21% |
| Return on assets (ROA) | 7.96% | 12.09% | 18.22% | 35.24% | 25.96% |
| Return on total capital | 9.90% | 17.79% | 34.27% | 56.85% | 45.78% |
| Return on equity (ROE) | 9.56% | 14.53% | 27.89% | 42.87% | 34.15% |
Sturm Ruger & Company Inc's profitability ratios show a mixed performance over the specified period.
1. Operating return on assets (Operating ROA) increased significantly from 34.21% in 2020 to 45.92% in 2021, indicating improved efficiency in generating operating income from its assets. However, there was a notable decline in 2022 to 21.34%, followed by a further decrease to 13.06% in 2023 and 8.24% in 2024. This suggests a decrease in the company's ability to generate operating income relative to its total assets in the latter years.
2. Return on assets (ROA) also followed a similar trend, rising from 25.96% in 2020 to 35.24% in 2021 before declining to 18.22% in 2022, 12.09% in 2023, and 7.96% in 2024. This metric reflects the company's overall profitability relative to its total assets, showing a decreasing trend over the years.
3. Return on total capital peaked at 56.85% in 2021 and then decreased to 34.27% in 2022, 17.79% in 2023, and 9.90% in 2024. This ratio indicates the company's ability to generate returns for all sources of financing, including both equity and debt, and the declining trend suggests a reduction in profitability efficiency.
4. Return on equity (ROE) also displayed a similar pattern, starting at 34.15% in 2020, reaching 42.87% in 2021, and then declining to 27.89% in 2022, 14.53% in 2023, and 9.56% in 2024. ROE reflects the company's ability to generate profits from shareholders' equity and indicates a declining trend in the company's profitability over the analyzed period.
Overall, based on the profitability ratios, Sturm Ruger & Company Inc showed strong performance initially but experienced a decline in profitability in later years, signaling potential challenges in generating returns from its assets and capital sources.