Sturm Ruger & Company Inc (RGR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 331,721 | 316,738 | 363,661 | 264,699 | 285,458 |
| ROE | 14.53% | 27.89% | 42.87% | 34.15% | 11.31% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $48,215K ÷ $331,721K
= 14.53%
Sturm, Ruger & Co., Inc.'s return on equity (ROE) has exhibited fluctuations over the past five years. The ROE decreased from 11.31% in 2019 to 34.15% in 2020, indicating a significant improvement in the company's ability to generate profits from its shareholders' equity. However, in 2021, the ROE further increased to 42.87%, suggesting that the company's profitability and efficiency in utilizing shareholders' equity improved even more substantially.
Subsequently, in 2022, the ROE saw another notable increase to 27.89%, although it was lower compared to the previous year. This could signal a possible decline in the company's profitability growth rate. Finally, in 2023, the ROE further decreased to 14.53%, indicating a significant drop in the company's ability to generate returns for its shareholders relative to the previous year.
Overall, Sturm, Ruger & Co., Inc.'s ROE demonstrates a mixed performance over the period, with significant fluctuations year-on-year. It is essential for investors and stakeholders to further investigate the underlying factors driving these changes in ROE to assess the company's financial health and long-term sustainability.
Peer comparison
Dec 31, 2023