Rush Enterprises A Inc (RUSHA)

Payables 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
Payables US$ in thousands 244,018 173,777 166,630 181,079 162,134 177,142 186,809 200,412 171,717 185,695 175,563 171,119 122,291 128,137 124,124 136,329 110,728 109,982 98,011 122,830
Payables turnover 25.71 36.12 38.09 34.80 39.05 34.92 32.56 29.49 32.70 27.65 26.41 24.92 32.99 31.59 32.47 27.84 34.86 35.57 43.67 38.63

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,273,330K ÷ $244,018K
= 25.71

The payables turnover ratio of Rush Enterprises A Inc has fluctuated over the past few years based on the data provided. The trend shows variability, with the ratio peaking at 43.67 on June 30, 2020, and hitting a low of 24.92 on March 31, 2022. The ratio measures how efficiently the company is managing its accounts payable by evaluating how many times it pays off its average accounts payable during a specific period.

A higher payables turnover ratio generally indicates that the company is paying off its suppliers more frequently, which can be beneficial in terms of managing working capital efficiently. Conversely, a lower ratio may indicate that the company is taking longer to pay its bills, which could potentially strain supplier relationships or signal liquidity issues.

In analyzing Rush Enterprises A Inc's payables turnover ratio, it is crucial to consider industry norms and benchmarks to assess the company's performance relative to its peers. Further investigation into the reasons behind the fluctuations in the payables turnover ratio over time, such as changes in payment terms with suppliers, changes in operating efficiency, or shifts in the company's overall financial position, can provide deeper insights into the company's financial health and operational effectiveness.