Rush Enterprises A Inc (RUSHA)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,925,020 | 7,101,670 | 5,126,140 | 4,735,940 | 5,809,850 |
| Property, plant and equipment | US$ in thousands | 1,488,090 | 1,368,590 | 1,278,210 | 1,203,720 | 1,279,930 |
| Fixed asset turnover | 5.33 | 5.19 | 4.01 | 3.93 | 4.54 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,925,020K ÷ $1,488,090K
= 5.33
The fixed asset turnover ratio for Rush Enterprises A Inc has exhibited a generally increasing trend from 2019 to 2023. The ratio indicates how efficiently the company is generating sales revenue in relation to its investment in fixed assets.
The ratio increased from 4.54 in 2019 to 5.33 in 2023, demonstrating an improvement in the company's ability to utilize its fixed assets to generate sales. This suggests that Rush Enterprises A Inc has been more effective in leveraging its investments in property, plant, and equipment to generate revenue over the years.
Moreover, the consistently high fixed asset turnover ratios observed from 2021 to 2023 indicate that the company has been able to efficiently utilize its fixed assets to drive sales growth. This efficiency can be attributed to effective asset management and operational performance.
Overall, the increasing trend in the fixed asset turnover ratio for Rush Enterprises A Inc signifies improving efficiency in generating revenue from its fixed assets, a positive indicator of the company's operational performance and asset utilization.
Peer comparison
Dec 31, 2023