Sturm Ruger & Company Inc (RGR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.20 | 1.53 | 1.22 | 1.32 | 1.22 |
Based on the solvency ratios of Sturm, Ruger & Co., Inc. for the past five years, we can observe the following:
1. Debt-to-assets ratio: This ratio indicates the proportion of a company's assets that are financed through debt. Sturm, Ruger & Co., Inc. has consistently maintained a debt-to-assets ratio of 0.00 over the past five years, indicating that the company has not relied on debt to finance its assets.
2. Debt-to-capital ratio: This ratio measures the proportion of a company's capital that is financed through debt. Similar to the debt-to-assets ratio, Sturm, Ruger & Co., Inc. has reported a debt-to-capital ratio of 0.00 for each of the past five years, suggesting minimal reliance on debt for financing its operations.
3. Debt-to-equity ratio: The debt-to-equity ratio indicates the extent to which a company is leveraging its equity to finance its operations. Sturm, Ruger & Co., Inc. has consistently maintained a debt-to-equity ratio of 0.00 for the past five years, reflecting a conservative financial structure with a lack of debt financing.
4. Financial leverage ratio: The financial leverage ratio measures the extent to which a company's operations are funded through debt. Sturm, Ruger & Co., Inc.'s financial leverage ratio has fluctuated over the years, with the ratio decreasing from 1.53 in 2022 to 1.20 in 2023. This suggests a reduction in the company's reliance on debt to fund its operations in the most recent year compared to the previous year.
Overall, based on the solvency ratios analyzed, Sturm, Ruger & Co., Inc. exhibits a conservative financial strategy with minimal debt usage in its capital structure. The decreasing trend in the financial leverage ratio indicates a potential reduction in debt dependency, which could positively impact the company's financial stability and risk profile.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 287.95 | 423.96 | 1,260.72 | 634.41 | 225.10 |
Based on the data provided, it appears that Sturm, Ruger & Co., Inc. did not report any specific values for the interest coverage ratio for the years ending December 31, 2023, 2022, 2020, and 2019. However, there is a significant spike in the interest coverage ratio for the year ending December 31, 2021, as the ratio reached a substantial level of 1,765.30.
The absence of reported interest coverage ratios for the years besides 2021 indicates potential fluctuations in the company's ability to cover its interest expenses with its operating income during those years. It is essential to note that a very high interest coverage ratio, as seen in 2021, may suggest that the company had a significant capacity to meet its interest obligations with its earnings at that time.
Further analysis and additional data from the intervening years are necessary to provide a more comprehensive assessment of the company's overall financial health and its ability to manage its interest expenses effectively.