The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Sturm Ruger's quick ratio for the quarter that ended in Dec. 2023 was 3.03.
Sturm Ruger has a quick ratio of 3.03. It generally indicates good short-term financial strength.
The historical rank and industry rank for Sturm Ruger's Quick Ratio or its related term are showing as below:
RGR'
s Quick Ratio Range Over the Past 10 Years
Min: 1.22 Med: 2.46 Max: 3.69
Current: 3.03
During the past 13 years, Sturm Ruger's highest Quick Ratio was 3.69. The lowest was 1.22. And the median was 2.46.
RGR's Quick Ratio is ranked better than 83.71% of 313
companies
in the Aerospace & Defense industry
Industry Median: 1.09
vs RGR: 3.03
Sturm Ruger Quick Ratio Historical Data
The historical data trend for Sturm Ruger's Quick Ratio 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.
For the Aerospace & Defense subindustry, Sturm Ruger's Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio Distribution
For the Aerospace & Defense industry and Industrials sector, Sturm Ruger's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Sturm Ruger's Quick Ratio falls into.
Sturm Ruger Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Sturm Ruger's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
Sturm Ruger (NYSE:RGR) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Sturm Ruger Quick Ratio Related Terms
Thank you for viewing the detailed overview of Sturm Ruger's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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