Sturm Ruger & Company Inc (RGR)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 30,563 | 48,215 | 88,332 | 155,899 | 90,398 |
| Total assets | US$ in thousands | 384,034 | 398,817 | 484,763 | 442,343 | 348,258 |
| ROA | 7.96% | 12.09% | 18.22% | 35.24% | 25.96% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $30,563K ÷ $384,034K
= 7.96%
Sturm Ruger & Company Inc's return on assets (ROA) has shown a declining trend over the past five years. The ROA was at its peak in 2021 at 35.24% but decreased in the following years to 18.22% in 2022, 12.09% in 2023, and further dropped to 7.96% in 2024.
This downward trend suggests that the company's efficiency in generating profits from its assets has been decreasing over time. It may indicate challenges in effectively utilizing its assets to generate earnings or potential inefficiencies in the company's operations.
It would be important for stakeholders and investors to further analyze the reasons behind this decline in ROA and assess the company's strategies for improving asset utilization in order to enhance overall profitability and financial performance.
Peer comparison
Dec 31, 2024