Sturm Ruger & Company Inc (RGR)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 48,215 | 88,332 | 155,899 | 90,398 | 32,291 |
| Total assets | US$ in thousands | 398,817 | 484,763 | 442,343 | 348,258 | 348,961 |
| ROA | 12.09% | 18.22% | 35.24% | 25.96% | 9.25% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $48,215K ÷ $398,817K
= 12.09%
Sturm, Ruger & Co., Inc.'s return on assets (ROA) has exhibited fluctuating trends over the past five years. The ROA decreased from 35.24% in 2021 to 25.96% in 2020 before experiencing a significant increase to 18.22% in 2022. Subsequently, in 2023, the ROA further decreased to 12.09%.
The ROA measure indicates how efficiently the company utilizes its assets to generate profits. A higher ROA implies better asset utilization and profitability. The significant variations in Sturm, Ruger & Co., Inc.'s ROA suggest possible changes in operational efficiency and profitability over the years.
It is essential to identify the factors contributing to the fluctuations in ROA to assess the company's operational performance accurately. Further analysis of the company's financial statements and industry benchmarks may provide insights into the specific drivers behind the changes in ROA. This analysis can help stakeholders understand the company's ability to generate profits relative to its asset base and track its operational efficiency over time.
Peer comparison
Dec 31, 2023