Rush Enterprises A Inc (RUSHA)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	6,331,930	5,614,510	4,033,840	3,860,470	4,784,220
Payables	US$ in thousands	162,134	171,717	122,291	110,728	133,697
Payables turnover		39.05	32.70	32.99	34.86	35.78

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $6,331,930K ÷ $162,134K
= 39.05

The payables turnover ratio for Rush Enterprises A Inc has shown a fluctuating trend over the last five years. The ratio increased from 35.78 in 2019 to 39.05 in 2023, indicating that the company's ability to pay off its accounts payable within a specific period improved over this period.

A higher payables turnover ratio suggests that the company is managing its accounts payable more efficiently, either by extending payment terms or negotiating better terms with suppliers. This can be seen as a positive sign as it may indicate strong vendor relationships and effective working capital management.

However, it is important to consider the industry norms and compare this ratio with the company's competitors to gain a better perspective on its payables management. Additionally, a high payables turnover ratio could also indicate potential liquidity issues, so it's essential to analyze this ratio in conjunction with other financial metrics for a more comprehensive assessment of the company's financial health.