Rush Enterprises A Inc (RUSHA)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,273,330 | 6,331,930 | 5,614,510 | 4,033,840 | 3,860,470 |
| Inventory | US$ in thousands | 1,787,740 | 1,801,450 | 1,429,430 | 1,020,140 | 858,291 |
| Inventory turnover | 3.51 | 3.51 | 3.93 | 3.95 | 4.50 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,273,330K ÷ $1,787,740K
= 3.51
The inventory turnover ratio for Rush Enterprises A Inc has been gradually declining over the last five years, starting at 4.50 in December 31, 2020, and decreasing to 3.51 by December 31, 2024. This trend indicates that the company's inventory is taking longer to sell, which could suggest potential inefficiencies in managing and controlling inventory levels. A lower inventory turnover may indicate overstocking, obsolete inventory, or poor sales performance, ultimately affecting the company's profitability and liquidity. Rush Enterprises A Inc should closely monitor its inventory turnover ratio and take necessary measures to optimize inventory management and improve operational efficiency.
Peer comparison
Dec 31, 2024