Sturm Ruger (Sturm Ruger) Interest Coverage

: 368.46 (As of Dec. 2023)

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

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Sturm Ruger's Operating Income for the three months ended in Dec. 2023 was $10.3 Mil. Sturm Ruger's Interest Expense for the three months ended in Dec. 2023 was $-0.0 Mil. Sturm Ruger's interest coverage for the quarter that ended in Dec. 2023 was 368.46. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Sturm Ruger & Co Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

RGR' s Interest Coverage Range Over the Past 10 Years
Min: 203.03 Med: 453.24 Max: 1237.86
Current: 254.04

RGR's Interest Coverage is ranked better than
92.13% of 216 companies
in the Aerospace & Defense industry
Industry Median: 7.04 vs RGR: 254.04

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Sturm Ruger Interest Coverage Historical Data

The historical data trend for Sturm Ruger's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Sturm Ruger Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

205.36

623.54

1,237.86

403.98

254.04

Sturm Ruger Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																385.18	680.84	613.83	51.85	368.46

Competitive Comparison

For the Aerospace & Defense subindustry, Sturm Ruger's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

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

* The bar in red indicates where Sturm Ruger's Interest Coverage falls into.

Sturm Ruger Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Sturm Ruger's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Sturm Ruger's Interest Expense was $-0.2 Mil. Its Operating Income was $52.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $2.2 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	52.079	/	-0.205
	=	254.04

Sturm Ruger's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Sturm Ruger's Interest Expense was $-0.0 Mil. Its Operating Income was $10.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $2.2 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	10.317	/	-0.028
	=	368.46

The higher the ratio, the stronger the company's Financial Strength is.

Sturm Ruger (NYSE:RGR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Sturm Ruger Interest Coverage Related Terms

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

Sturm Ruger (Sturm Ruger) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

ST2:Germany ST2:Germany

Address

1 Lacey Place, Southport, CT, USA, 06890

Website

http://www.ruger.com

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