Sturm Ruger & Company Inc (RGR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.57% | 30.22% | 38.26% | 33.65% | 24.25% |
| Operating profit margin | 9.58% | 17.36% | 27.80% | 20.94% | 9.59% |
| Pretax margin | 10.82% | 18.17% | 28.27% | 21.27% | 10.48% |
| Net profit margin | 8.87% | 14.82% | 21.33% | 15.89% | 7.87% |
Sturm, Ruger & Co., Inc.'s profitability ratios have displayed fluctuations over the past five years. The gross profit margin declined from 38.26% in 2021 to 24.57% in 2023, indicating a decrease in the company's ability to generate profits after accounting for the cost of goods sold. The operating profit margin also experienced a downward trend, decreasing from 27.78% in 2021 to 9.58% in 2023, suggesting a reduction in profitability from its core operations.
Similarly, the pretax margin decreased from 28.27% in 2021 to 10.82% in 2023, reflecting a decline in profitability before accounting for taxes. The net profit margin also followed a similar pattern, decreasing from 21.33% in 2021 to 8.87% in 2023, indicating a decrease in the company's profitability after considering all expenses.
Overall, the declining trend in profitability margins over the past few years may raise concerns about the company's operational efficiency, cost management, and revenue generation. It is important for investors and stakeholders to closely monitor these ratios to assess the company's financial health and performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.06% | 21.34% | 45.92% | 34.21% | 11.28% |
| Return on assets (ROA) | 12.09% | 18.22% | 35.24% | 25.96% | 9.25% |
| Return on total capital | 17.79% | 34.27% | 56.85% | 45.78% | 15.14% |
| Return on equity (ROE) | 14.53% | 27.89% | 42.87% | 34.15% | 11.31% |
Sturm, Ruger & Co., Inc.'s profitability ratios demonstrate a fluctuating but generally positive trend over the past five years.
The Operating return on assets (Operating ROA) decreased from 45.89% in 2021 to 13.06% in 2023. Despite the decrease, the company continues to generate a good return on its operating assets, indicating its efficiency in utilizing assets to generate operating income.
The Return on assets (ROA) also decreased from 35.24% in 2021 to 12.09% in 2023. Although there was a decline, the company is still generating a solid return on its total assets, reflecting its ability to generate profits from its asset base.
The Return on total capital decreased from 55.82% in 2021 to 15.70% in 2023. This metric evaluates the return generated on all forms of capital employed by the company. The decreasing trend suggests a potential decrease in efficiency in generating profits compared to the capital invested.
The Return on equity (ROE) decreased from 42.87% in 2021 to 14.53% in 2023. ROE indicates how well the company is generating a return on shareholders' equity. Even though there was a decline, the company is still delivering a satisfactory return to its shareholders.
In conclusion, while there has been a decrease in profitability ratios, Sturm, Ruger & Co., Inc. continues to demonstrate efficiency in generating returns on its assets, total capital, and equity. However, management should closely monitor these ratios to ensure sustained profitability and efficiency in the future.