Answer
The ring shear capacity $P_r$ is determined by the cross-sectional area of the ring that must be sheared to allow the assembly to fail axially. $P_r = \frac{\pi \cdot D \cdot t \cdot S_s}{S_f}$, where $t$ is the ring thickness and $S_s$ is the shear strength of the ring material ($S_s \approx 0.6 S_u$). In most engineering scenarios using high-strength alloys like 302 Stainless or 17-7PH, $P_r$ significantly exceeds the groove capacity $P_g$. Therefore, the design bottleneck is almost always the groove deformation. Only in cases with very thin rings ($t < 0.020$ inches) and high-strength tool steel housings does ring shear become the primary failure mode.