Rush Enterprises A Inc (RUSHA)
Payables 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 |
| Payables | US$ in thousands | 244,018 | 162,134 | 171,717 | 122,291 | 110,728 |
| Payables turnover | 25.71 | 39.05 | 32.70 | 32.99 | 34.86 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,273,330K ÷ $244,018K
= 25.71
To analyze Rush Enterprises A Inc's payables turnover, we observe a fluctuating trend over the years. The payables turnover ratio, which represents how efficiently the company is managing its accounts payable, decreased from 34.86 in 2020 to 25.71 in 2024.
A higher payables turnover ratio is generally preferred as it indicates that the company is paying off its suppliers quickly. Conversely, a decreasing ratio could suggest that the company is taking longer to pay its creditors, potentially leading to strained supplier relationships or missed early payment discounts.
In the case of Rush Enterprises A Inc, the drop in the payables turnover ratio from 2020 to 2024 may signify a shift in the company's accounts payable management practices. It is essential for stakeholders to further investigate the reasons behind this trend and assess its impact on the company's financial health and supplier relationships.
Peer comparison
Dec 31, 2024