Sturm Ruger & Company Inc (RGR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 1.20 | 1.53 | 1.22 | 1.32 |
Sturm Ruger & Company Inc exhibits exceptional solvency ratios, as shown by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across the years from 2020 to 2024. These ratios suggest that the company operates with minimal financial leverage and maintains a conservative capital structure, indicating a strong ability to meet its financial obligations without relying heavily on external debt. The financial leverage ratio, which shows the degree of total assets financed by debt, has been relatively stable over the years, ranging from 1.20 to 1.53. This indicates a moderate level of financial risk and suggests that the company has been effectively managing its debt levels to support its operations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 310.33 | 287.95 | 423.96 | 1,260.72 | 634.41 |
Interest coverage ratio measures a company's ability to meet its interest obligations using its earnings before interest and taxes (EBIT). Higher interest coverage ratios indicate that the company is more capable of servicing its debt payments.
For Sturm Ruger & Company Inc, the interest coverage ratio has been consistently strong over the years. In 2020, it was 634.41, increasing significantly to 1,260.72 in 2021, indicating a robust ability to cover interest expenses. However, there was a slight decrease in 2022 to 423.96, possibly due to changes in earnings or interest costs. Subsequently, the ratio decreased further to 287.95 in 2023 and then increased to 310.33 in 2024.
Overall, the company's interest coverage ratio paints a positive picture, suggesting that Sturm Ruger & Company Inc has been efficiently managing its interest payments and has a comfortable buffer between its earnings and interest expenses.