Sturm Ruger & Company Inc (RGR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 331,721 | 335,305 | 333,176 | 322,068 | 316,738 | 398,506 | 386,957 | 377,953 | 363,661 | 338,070 | 319,142 | 288,480 | 264,699 | 241,282 | 311,547 | 297,819 | 285,458 | 277,632 | 275,840 | 273,929 |
| ROE | 14.53% | 16.98% | 20.37% | 22.50% | 27.89% | 26.98% | 32.13% | 39.14% | 42.87% | 44.22% | 43.57% | 39.26% | 34.15% | 27.72% | 15.07% | 11.62% | 11.31% | 13.10% | 14.77% | 18.14% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $48,215K ÷ $331,721K
= 14.53%
Sturm, Ruger & Co., Inc.'s return on equity (ROE) has exhibited a declining trend over the past eight quarters, starting at 39.14% in Q1 2022 and dropping to 14.53% in Q4 2023. This downward trend suggests that the company's profitability in relation to shareholders' equity has been decreasing.
ROE serves as a measure of a company's efficiency in generating profits from its shareholders' equity. A high ROE indicates that the company is effectively utilizing its equity to generate earnings, while a declining ROE may signal inefficiencies in the company's operations or competitive challenges.
The gradual decline in Sturm, Ruger & Co., Inc.'s ROE from 39.14% to 14.53% over the analyzed period warrants further investigation into factors impacting the company's profitability, such as changes in sales, expenses, or capital structure. Management should closely monitor and address the underlying reasons for the diminishing ROE to ensure sustainable and profitable operations in the future.
Peer comparison
Dec 31, 2023