STURM RUGER & CO INC Earnings Per Share Disclosure
14. Earnings Per Share
Set forth below is a reconciliation of the numerator and denominator for the basic and diluted earnings per share calculations for the periods indicated:
| Year ended December 31, | 2024 | 2023 | 2022 | |||||||||
| Numerator: | ||||||||||||
| Net income | $ | 30,563 | $ | 48,215 | $ | 88,332 | ||||||
| Denominator: | ||||||||||||
| Weighted average number of common shares outstanding – Basic | 17,088,205 | 17,676,955 | 17,648,850 | |||||||||
| Dilutive effect of options and restricted stock units outstanding under the Company’s employee compensation plans | 181,896 | 134,263 | 144,498 | |||||||||
| Weighted average number of common shares outstanding – Diluted | 17,270,101 | 17,811,218 | 17,793,348 | |||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.