Sturm Ruger & Company Inc (RGR)
Return on assets (ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 48,215 | 56,920 | 67,878 | 72,450 | 88,332 | 107,499 | 124,312 | 147,939 | 155,899 | 149,491 | 139,042 | 113,252 | 90,398 | 66,893 | 46,957 | 34,596 | 32,291 | 36,357 | 40,746 | 49,702 |
| Total assets | US$ in thousands | 398,817 | 400,350 | 396,898 | 389,097 | 484,763 | 460,902 | 443,732 | 446,478 | 442,343 | 420,061 | 398,876 | 364,129 | 348,258 | 310,568 | 389,856 | 362,399 | 348,961 | 328,507 | 320,917 | 331,711 |
| ROA | 12.09% | 14.22% | 17.10% | 18.62% | 18.22% | 23.32% | 28.02% | 33.13% | 35.24% | 35.59% | 34.86% | 31.10% | 25.96% | 21.54% | 12.04% | 9.55% | 9.25% | 11.07% | 12.70% | 14.98% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $48,215K ÷ $398,817K
= 12.09%
Sturm, Ruger & Co., Inc.'s return on assets (ROA) has shown a general downward trend over the past eight quarters. The ROA decreased from 33.13% in Q1 2022 to 12.09% in Q4 2023. This decline indicates a diminishing ability of the company to generate profits relative to its total assets.
The ROA peaked at 33.13% in Q1 2022 and has since been on a steady decline. The company's ROA was relatively high in early 2022 but has significantly decreased since then. The sharp drop in ROA from Q2 2022 to Q3 2022, where it fell from 28.02% to 23.32%, is notable.
A low ROA could suggest inefficiency in asset utilization or declining profitability. It may be a cause for concern for investors and stakeholders as it reflects a reduction in the company's ability to generate earnings from its available assets. The management of Sturm, Ruger & Co., Inc. may need to evaluate and potentially improve their asset management and operational efficiency to reverse this trend in ROA.
Peer comparison
Dec 31, 2023