Rush Enterprises A Inc (RUSHA)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	6,273,330	6,277,250	6,346,500	6,301,060	6,331,940	6,185,380	6,081,930	5,909,750	5,614,510	5,135,060	4,636,396	4,264,606	4,033,838	4,048,458	4,030,348	3,795,299	3,860,467	3,911,727	4,280,111	4,744,990
Inventory	US$ in thousands	1,787,740	1,964,840	1,894,210	2,031,780	1,801,450	1,671,620	1,637,320	1,498,950	1,429,430	1,351,930	1,273,970	1,111,070	1,020,140	754,006	813,773	877,876	858,291	937,878	1,004,620	1,190,320
Inventory turnover		3.51	3.19	3.35	3.10	3.51	3.70	3.71	3.94	3.93	3.80	3.64	3.84	3.95	5.37	4.95	4.32	4.50	4.17	4.26	3.99

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,273,330K ÷ $1,787,740K
= 3.51

Rush Enterprises A Inc's inventory turnover ratio has shown fluctuations over the past five years. The ratio ranged from a low of 3.51 in December 2023 to a high of 5.37 in September 2021. A higher inventory turnover ratio indicates that the company is selling its inventory more frequently within a specific period, which can be a positive sign of efficient inventory management and liquidity.

However, there was a downward trend in the inventory turnover ratio from September 2021 to December 2024, indicating a potential slowdown in sales relative to inventory levels. This decline may raise concerns about excess inventory or potential inefficiencies in managing inventory levels.

Overall, Rush Enterprises A Inc's inventory turnover ratios provide insights into the company's ability to efficiently manage its inventory levels and convert them into sales. Monitoring this ratio over time can help assess the company's inventory management practices and operational efficiency.