Sturm Ruger & Company Inc (RGR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 59,029 | 68,707 | 81,575 | 87,442 | 108,535 | 131,604 | 157,251 | 190,790 | 203,136 | 200,452 | 186,584 | 150,941 | 119,148 | 86,928 | 59,645 | 43,084 | 39,373 | 46,580 | 52,962 | 64,865 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 17.79% | 20.49% | 24.48% | 27.15% | 34.27% | 33.02% | 40.64% | 50.48% | 55.86% | 59.29% | 58.46% | 52.32% | 45.01% | 36.03% | 19.14% | 14.47% | 13.79% | 16.78% | 19.20% | 23.68% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $59,029K ÷ ($—K + $331,721K)
= 17.79%
Sturm, Ruger & Co., Inc.'s return on total capital has exhibited fluctuations over the past eight quarters, ranging from 15.70% to 50.21%. The return on total capital was strong in Q1 2022, reaching 50.21%, indicating efficient utilization of the company's capital resources to generate profits. However, this high level of performance was followed by a declining trend in subsequent quarters, with the return decreasing to 22.49% in Q2 2023.
The company experienced a significant drop in return on total capital from Q3 2022 (32.23%) to Q4 2022 (32.65%), but then it steadily declined in the following quarters. The latest observation for Q4 2023 shows a slight improvement to 15.70%. This fluctuation in return on total capital implies varying levels of profitability relative to the capital employed by the company during the period under review. Overall, the analysis suggests the need for the company to focus on optimizing its capital allocation strategies to enhance overall returns in the future.
Peer comparison
Dec 31, 2023