Sturm Ruger & Company Inc (RGR)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 398,817 | 484,763 | 442,343 | 348,258 | 348,961 |
| Total stockholders’ equity | US$ in thousands | 331,721 | 316,738 | 363,661 | 264,699 | 285,458 |
| Financial leverage ratio | 1.20 | 1.53 | 1.22 | 1.32 | 1.22 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $398,817K ÷ $331,721K
= 1.20
The financial leverage ratio of Sturm, Ruger & Co., Inc. has exhibited some fluctuations over the past five years. As of December 31, 2023, the ratio stood at 1.20, reflecting a decrease from the prior year. This indicates that the company relied less on debt financing compared to the previous year.
Looking back, the ratio was relatively high at 1.53 as of December 31, 2022, signifying higher financial risk due to a greater proportion of debt in the company's capital structure. The ratio then decreased to 1.22 by December 31, 2021, before increasing to 1.32 by December 31, 2020.
The financial leverage ratio of 1.22 as of December 31, 2019, was comparable to the ratio in 2021. Overall, the trend in the financial leverage ratio indicates variability in the company's use of debt over the years, potentially impacting its financial stability and risk profile.
Peer comparison
Dec 31, 2023