Sturm Ruger & Company Inc (RGR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 59,029 | 108,535 | 206,758 | 121,172 | 43,219 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 331,721 | 316,738 | 363,661 | 264,699 | 285,458 |
| Return on total capital | 17.79% | 34.27% | 56.85% | 45.78% | 15.14% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $59,029K ÷ ($—K + $331,721K)
= 17.79%
Sturm, Ruger & Co., Inc. has experienced fluctuations in its return on total capital over the past five years. The return on total capital was 15.70% in 2023, which is a decrease from the previous year's figure of 32.65% in 2022. The return on total capital was highest in 2021 at 55.82%, indicating a strong profitability relative to the capital invested in the business. The company also demonstrated a robust performance in 2020 with a return on total capital of 44.99%.
Overall, the return on total capital for Sturm, Ruger & Co., Inc. has shown variability over the years, with significant fluctuations observed. This metric provides valuable insights into the company's ability to generate profits from the total capital employed in its operations. Further analysis and monitoring of this ratio may help in assessing the company's operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2023