Sturm Ruger & Company Inc (RGR)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 31,654 | 59,029 | 108,535 | 206,758 | 121,172 |
| Interest expense | US$ in thousands | 102 | 205 | 256 | 164 | 191 |
| Interest coverage | 310.33 | 287.95 | 423.96 | 1,260.72 | 634.41 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $31,654K ÷ $102K
= 310.33
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. For Sturm Ruger & Company Inc, the interest coverage ratio has shown a consistent and strong performance over the last five years.
As of December 31, 2020, the interest coverage ratio was 634.41, indicating that the company's operating income was 634 times higher than its interest expenses for that year. This signifies a robust capacity to meet its interest obligations.
The following year, on December 31, 2021, the interest coverage ratio increased significantly to 1,260.72, demonstrating an even stronger ability to cover interest expenses with operating income.
In December 31, 2022, the interest coverage ratio slightly decreased to 423.96, which is still a healthy level and indicates that the company's operating income continues to comfortably cover its interest payments.
By December 31, 2023, the interest coverage ratio declined further to 287.95, reflecting a moderate decrease in the company's ability to cover interest expenses with operating income compared to the previous years.
As of December 31, 2024, the interest coverage ratio improved to 310.33, suggesting that the company's operating income once again had a stronger ability to cover its interest expenses.
Overall, the trend in Sturm Ruger & Company Inc's interest coverage ratio indicates a generally strong and healthy financial position, with occasional fluctuations that are within acceptable ranges.
Peer comparison
Dec 31, 2024