Sturm Ruger & Company Inc (RGR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 319,582 | 331,721 | 316,738 | 363,661 | 264,699 |
| ROE | 9.56% | 14.53% | 27.89% | 42.87% | 34.15% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $30,563K ÷ $319,582K
= 9.56%
Sturm Ruger & Company Inc's return on equity (ROE) has shown a fluctuating trend over the past five years.
In December 31, 2020, the ROE stood at a healthy 34.15%, reflecting strong profitability generated from shareholders' equity.
By the end of December 31, 2021, the ROE rose to 42.87%, indicating an improvement in the company's ability to generate profit from the shareholders' investments.
However, in December 31, 2022, the ROE decreased to 27.89%. This could signify a potential decline in the company's profitability compared to the previous year.
The downward trend continued into December 31, 2023, with the ROE dropping to 14.53%. This substantial decrease may raise concerns about the company's efficiency in utilizing shareholders' equity to generate profits.
Finally, as of December 31, 2024, the ROE further decreased to 9.56%, suggesting a continued decline in the company's profitability relative to the shareholders' equity.
In summary, Sturm Ruger & Company Inc's ROE has experienced fluctuations in the past five years, showcasing periods of strong profitability and also contraction. It is crucial for stakeholders to monitor this metric closely to understand the company's performance in generating returns from shareholders' equity.
Peer comparison
Dec 31, 2024