Rush Enterprises A Inc (RUSHA)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	4,784,230	4,982,560	4,775,140	4,605,530
Inventory	US$ in thousands	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	1,326,080	1,385,130	1,512,440	1,465,440
Inventory turnover		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	3.61	3.60	3.16	3.14

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,331,940K ÷ $1,801,450K
= 3.51

The inventory turnover ratio for Rush Enterprises A Inc over the given periods has fluctuated, indicating varying efficiency in managing inventory levels. Generally, a higher inventory turnover ratio is favorable as it signifies that the company is selling its inventory more quickly.

The trend for Rush Enterprises A Inc's inventory turnover ratio shows a peak of 5.37 in the third quarter of 2021, potentially indicating an improvement in inventory management during that period. However, the ratio has since decreased and oscillated around the range of 3.50 to 4.50, with some quarterly variations.

Overall, the company's inventory turnover ratio has been relatively stable in recent periods, averaging around 4. This suggests that Rush Enterprises A Inc has been able to efficiently sell and replenish its inventory, although there may be room for improvement to optimize its inventory management processes further.