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Alright you guys, I was looking into investing into one of these firms. So I thought I would put this small little report together for you guys to view. This is just my opinion based on my opinion, this can be completely wrong. All this is data is publicly available information.
Smith had total revenue of $872 million, while Ruger had total revenue of $654 million. By comparison Smith and Wesson is a bigger company that produces more total revenue then Ruger. Smith also has a higher net income then Ruger after expenses. (Chart 1 & 2)
With that, Smith also produces more cash than Ruger. Keep in mind Net Income does not mean cash. Many companies have a negative Net Income but produce a positive inflow of cash. Smith has a positive cash flow from operations of $207 million, while Ruger has a Positive cash flow from operations of $103 million. This is very important, because cash is what a company needs to stay in business. Many billion dollar businesses have went out of business because they ran out of cash, and no bank would loan them more money. (Chart 3 & 4)
The balance sheet tells us a story of what assets the company owns and what liabilities it owes.
Smith and Wesson currently has $191 million in cash, and $59 million owed to them within 1 year for products sold. Smith is Very liquid. Smith currently has $77 million in inventory that has not been sold. They also have $135 million in Property, Plant & Equipment, this includes all the buildings, corporate offices, manufacturing equipment etc. Smith currently has $311 million in debt that it owes, and $122 million which is owed within 1 year, that is not bad at all. Again they have plenty of cash and cash owed to them.
Ruger currently has $69 million in cash, and $71 million owed to them within 1 year. They have $37 million in Inventory, and have property, plant & equipment of $103 million. They only owe $88 million, and $82 million is owed within 1 year, Ruger is looking very strong right now. They don't have much debt after 1 year. Ruger is ran VERY efficiently. That is a HUGE plus for them. (Chart 5 & 6)
Smith and Wesson has a contribution margin of 40%, while Ruger has a Contribution Margin of 33%.
This means for every $1.00 they make on there product sales, Smith and Wesson makes $0.40 profit, and they pay $0.60 on manufacturing costs. Ruger makes $0.33 profit and pay $0.67 on manufacture cost.
Overall, both of these companies are ran very well. Smith is the bigger company, but Ruger is growing and ran more efficient.
Chart 1 & 2
Chart 3 & 4
Chart 5 & 6
Smith had total revenue of $872 million, while Ruger had total revenue of $654 million. By comparison Smith and Wesson is a bigger company that produces more total revenue then Ruger. Smith also has a higher net income then Ruger after expenses. (Chart 1 & 2)
With that, Smith also produces more cash than Ruger. Keep in mind Net Income does not mean cash. Many companies have a negative Net Income but produce a positive inflow of cash. Smith has a positive cash flow from operations of $207 million, while Ruger has a Positive cash flow from operations of $103 million. This is very important, because cash is what a company needs to stay in business. Many billion dollar businesses have went out of business because they ran out of cash, and no bank would loan them more money. (Chart 3 & 4)
The balance sheet tells us a story of what assets the company owns and what liabilities it owes.
Smith and Wesson currently has $191 million in cash, and $59 million owed to them within 1 year for products sold. Smith is Very liquid. Smith currently has $77 million in inventory that has not been sold. They also have $135 million in Property, Plant & Equipment, this includes all the buildings, corporate offices, manufacturing equipment etc. Smith currently has $311 million in debt that it owes, and $122 million which is owed within 1 year, that is not bad at all. Again they have plenty of cash and cash owed to them.
Ruger currently has $69 million in cash, and $71 million owed to them within 1 year. They have $37 million in Inventory, and have property, plant & equipment of $103 million. They only owe $88 million, and $82 million is owed within 1 year, Ruger is looking very strong right now. They don't have much debt after 1 year. Ruger is ran VERY efficiently. That is a HUGE plus for them. (Chart 5 & 6)
Smith and Wesson has a contribution margin of 40%, while Ruger has a Contribution Margin of 33%.
This means for every $1.00 they make on there product sales, Smith and Wesson makes $0.40 profit, and they pay $0.60 on manufacturing costs. Ruger makes $0.33 profit and pay $0.67 on manufacture cost.
Overall, both of these companies are ran very well. Smith is the bigger company, but Ruger is growing and ran more efficient.
Chart 1 & 2
Chart 3 & 4
Chart 5 & 6
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