Sturm Ruger & Company Inc (RGR)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 398,817 | 400,350 | 396,898 | 389,097 | 484,763 | 460,902 | 443,732 | 446,478 | 442,343 | 420,061 | 398,876 | 364,129 | 348,258 | 310,568 | 389,856 | 362,399 | 348,961 | 328,507 | 320,917 | 331,711 |
| Total stockholders’ equity | US$ in thousands | 331,721 | 335,305 | 333,176 | 322,068 | 316,738 | 398,506 | 386,957 | 377,953 | 363,661 | 338,070 | 319,142 | 288,480 | 264,699 | 241,282 | 311,547 | 297,819 | 285,458 | 277,632 | 275,840 | 273,929 |
| Financial leverage ratio | 1.20 | 1.19 | 1.19 | 1.21 | 1.53 | 1.16 | 1.15 | 1.18 | 1.22 | 1.24 | 1.25 | 1.26 | 1.32 | 1.29 | 1.25 | 1.22 | 1.22 | 1.18 | 1.16 | 1.21 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $398,817K ÷ $331,721K
= 1.20
Sturm, Ruger & Co., Inc.'s financial leverage ratio has been fluctuating over the past eight quarters, indicating changes in the company's capital structure and debt levels. The financial leverage ratio measures the proportion of a company's total assets that are financed by debt as opposed to equity.
In Q4 2023, the financial leverage ratio stood at 1.20, which was slightly higher compared to the previous quarter but lower than the levels seen in Q4 2022. The increase in the ratio suggests that the company may have taken on additional debt or reduced its equity base in the most recent quarter.
The company's financial leverage ratio ranged from 1.15 to 1.53 over the past two years, indicating some volatility in the capital structure. The lower ratios seen in the earlier quarters of 2022 may imply a more conservative approach to debt financing, while the higher ratios in Q4 2022 signaled a potential increase in leverage.
Overall, careful monitoring of Sturm, Ruger & Co., Inc.'s financial leverage ratio is crucial to assess its risk exposure and evaluate the effectiveness of its capital structure decisions in balancing debt and equity financing.
Peer comparison
Dec 31, 2023