Sturm Ruger & Company Inc (RGR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 384,034 | 398,817 | 484,763 | 442,343 | 348,258 |
| Total stockholders’ equity | US$ in thousands | 319,582 | 331,721 | 316,738 | 363,661 | 264,699 |
| Financial leverage ratio | 1.20 | 1.20 | 1.53 | 1.22 | 1.32 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $384,034K ÷ $319,582K
= 1.20
The financial leverage ratio of Sturm Ruger & Company Inc has varied over the years as follows:
- December 31, 2020: 1.32
- December 31, 2021: 1.22
- December 31, 2022: 1.53
- December 31, 2023: 1.20
- December 31, 2024: 1.20
The financial leverage ratio measures the extent to which a company utilizes debt to finance its operations and investments. A higher ratio indicates higher financial risk due to increased reliance on debt financing.
In this case, we observe fluctuations in the financial leverage ratio of Sturm Ruger & Company Inc over the years, with the ratio peaking at 1.53 on December 31, 2022. This suggests that the company became more leveraged in that particular year. However, in the subsequent years, the ratio decreased to 1.20 by December 31, 2023 and remained stable at the same level by the end of 2024.
Overall, it is important for stakeholders to monitor the company's financial leverage ratio to assess its ability to meet its debt obligations and manage its financial risk effectively.
Peer comparison
Dec 31, 2024