GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Sturm Ruger & Co Inc (NYSE:RGR) » Definitions » ROE %

Sturm Ruger (Sturm Ruger) ROE % : 12.29% (As of Dec. 2023)


View and export this data going back to 1990. Start your Free Trial

What is Sturm Ruger ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Sturm Ruger's annualized net income for the quarter that ended in Dec. 2023 was $41.0 Mil. Sturm Ruger's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $333.5 Mil. Therefore, Sturm Ruger's annualized ROE % for the quarter that ended in Dec. 2023 was 12.29%.

The historical rank and industry rank for Sturm Ruger's ROE % or its related term are showing as below:

RGR' s ROE % Range Over the Past 10 Years
Min: 11.75   Med: 23.58   Max: 49.62
Current: 14.71

During the past 13 years, Sturm Ruger's highest ROE % was 49.62%. The lowest was 11.75%. And the median was 23.58%.

RGR's ROE % is ranked better than
75.76% of 297 companies
in the Aerospace & Defense industry
Industry Median: 6.15 vs RGR: 14.71

Sturm Ruger ROE % Historical Data

The historical data trend for Sturm Ruger's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sturm Ruger ROE % Chart

Sturm Ruger Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.75 32.86 49.62 25.96 14.87

Sturm Ruger Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.20 17.97 19.76 8.89 12.29

Competitive Comparison of Sturm Ruger's ROE %

For the Aerospace & Defense subindustry, Sturm Ruger's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sturm Ruger's ROE % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Sturm Ruger's ROE % distribution charts can be found below:

* The bar in red indicates where Sturm Ruger's ROE % falls into.



Sturm Ruger ROE % Calculation

Sturm Ruger's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=48.215/( (316.738+331.721)/ 2 )
=48.215/324.2295
=14.87 %

Sturm Ruger's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=40.996/( (335.305+331.721)/ 2 )
=40.996/333.513
=12.29 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Sturm Ruger  (NYSE:RGR) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=40.996/333.513
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(40.996 / 522.468)*(522.468 / 399.5835)*(399.5835 / 333.513)
=Net Margin %*Asset Turnover*Equity Multiplier
=7.85 %*1.3075*1.1981
=ROA %*Equity Multiplier
=10.26 %*1.1981
=12.29 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=40.996/333.513
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (40.996 / 48.04) * (48.04 / 41.268) * (41.268 / 522.468) * (522.468 / 399.5835) * (399.5835 / 333.513)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8534 * 1.1641 * 7.9 % * 1.3075 * 1.1981
=12.29 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Sturm Ruger ROE % Related Terms

Thank you for viewing the detailed overview of Sturm Ruger's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Sturm Ruger (Sturm Ruger) Business Description

Traded in Other Exchanges
Address
1 Lacey Place, Southport, CT, USA, 06890
Sturm Ruger & Co Inc and its subsidiary are principally engaged in the design, manufacture, and sale of firearms to domestic customers. The company's design and manufacturing operations are in the United States and almost all product content is domestic. The company primarily offers products in three industry product categories namely rifles, pistols, and revolvers. The company's firearms are sold through independent wholesale distributors, principally to the commercial sporting market. It also manufactures and sells investment castings made from steel alloys and metal injection molding parts for internal use in the firearms segment and has minimal sales to outside customers.
Executives
Michael W Wilson officer: VP of Mayodan Operations ONE LACEY PLACE, SOUTHPORT CT 06890
Amir Rosenthal director C/O KATY INDUSTRIES INC, 765 STRAITS TURNPIKE STE 2000, MIDDLEBURY CT 06762
Christopher John Killoy officer: Vice President Sales and Mtg. C/O STURM, RUGER, & COMPANY, INC., 1 LACEY PLACE, SOUTHPORT CT 06890
Reid Kevin B. Sr officer: VP & General Counsel C/O STURM, RUGER & CO. INC, 1 LACEY PLACE, SOUTHPORT CT 06890
Timothy Lowney officer: VP of Prescott Operations 1 LACEY PLACE, SOUTHPORT CT 06890
Rebecca S Halstead director ONE LACEY PLACE, SOUTHPORT CT 06890
Shawn Christopher Leska officer: Vice President, Sales ONE LACEY PLACE, SOUTHPORT CT 06890
C Michael Jacobi director C/O KATY INDUSTRIES INC, 765 STRAITS TURNPIKE STE 2000, MIDDLEBURY CT 06762
Randall Wheeler officer: VP of Newport Operations 1 LACEY PLACE, SOUTHPORT CT 06890
Terrence Gregory Oconnor director C/O HIGH RISE PARTNERS, 325 NORTH AVENUE EAST, WESTFIELD NJ 07090
Thomas Patrick Sullivan officer: VP of Newport Operations C/O STURM RUGER & COMPANY INC, ONE LACEY PLACE, SOUTHPORT CT 06890
Ronald C Whitaker director C/O STURM RUGER & COMPANY INC, ONE LACEY PLACE, SOUTHPORT CT 06890
Thomas Anthony Dineen officer: Treasurer and CFO
Michael O Fifer director, officer: President & CEO C/O STURM RUGER & COMPANY, INC, ONE LACEY PLACE, SOUTHPORT CT 06890
Werkmeister Robert J Jr officer: VP of Marketing ONE LACEY PLACE, SOUTHPORT CT 06890