Sturm Ruger & Company Inc (RGR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 52,084 | 103,456 | 203,136 | 119,148 | 39,375 |
| Total assets | US$ in thousands | 398,817 | 484,763 | 442,343 | 348,258 | 348,961 |
| Operating ROA | 13.06% | 21.34% | 45.92% | 34.21% | 11.28% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $52,084K ÷ $398,817K
= 13.06%
Sturm, Ruger & Co., Inc. has displayed varying trends in its operating return on assets (operating ROA) over the past five years. In 2023, the company's operating ROA was 13.06%, a decrease from the previous year's figure of 21.33%. This may indicate a decline in the company's ability to generate operating profits from its assets efficiently.
The 2023 operating ROA of 13.06% is significantly lower compared to the exceptionally high figure of 45.89% in 2021. This substantial drop suggests a potential decrease in the company's operational efficiency or profitability relative to its asset base. However, the 2023 operating ROA still surpasses the figures from 2020 (34.20%) and 2019 (11.30%), indicating a relatively stable performance compared to those years.
Overall, the declining trend in Sturm, Ruger & Co., Inc.'s operating ROA from 2021 to 2023 raises concerns about the company's operational effectiveness in converting its assets into operating profits. Further analysis into the company's operating expenses, asset utilization, and revenue generation may provide insights into the factors driving these changes in operating ROA.
Peer comparison
Dec 31, 2023