Sturm Ruger & Company Inc (RGR)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 331,721 | 316,738 | 363,661 | 264,699 | 285,458 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $331,721K
= 0.00
Based on the data provided for Sturm, Ruger & Co., Inc., the debt-to-equity ratio has consistently been at 0.00 for the past five years. A debt-to-equity ratio of 0.00 indicates that the company has not utilized any debt to finance its operations and has solely relied on equity financing. This signifies that the company has a strong financial position with minimal financial leverage and a lower level of risk associated with debt repayment obligations.
While a low debt-to-equity ratio could indicate a conservative financial strategy, it may also suggest limited flexibility in taking advantage of potential growth opportunities that could arise from strategic borrowing. Investors and stakeholders generally view a low debt-to-equity ratio positively as it portrays financial stability and strength. However, it is essential to consider the context of the industry and company-specific factors when evaluating the significance of this ratio in decision-making and assessing the overall financial health of Sturm, Ruger & Co., Inc.
Peer comparison
Dec 31, 2023