Rush Enterprises A Inc (RUSHA)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 21.48 27.69 27.57 25.99 28.00 29.52 32.35 32.44 28.36 29.57 25.56 29.22 30.85 34.05 31.13 25.01 24.10 30.74 32.00 26.79
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
Working capital turnover 10.55 11.05 11.63 10.38 13.50 18.27 16.41 16.17 16.17 16.75 13.39 13.82 15.97 12.54 13.23 12.71 14.31 17.27 22.18 27.94

Rush Enterprises A Inc's inventory turnover has fluctuated over the years, indicating changes in how efficiently the company manages its inventory levels. The ratios have generally ranged between 3.5 to 5.5 times annually, with a decrease observed in recent quarters, suggesting a potential need to evaluate and improve inventory management practices.

Regarding receivables turnover, the company's ability to collect outstanding payments from customers has varied significantly. The ratios have shown a downward trend from around 30 to 25 times annually, with a notable drop in the most recent quarters. This potentially indicates a lengthening payment collection period, which could lead to cash flow challenges if not addressed.

In terms of payables turnover, Rush Enterprises A Inc's efficiency in managing its accounts payable has been fluctuating, with ratios ranging between 25 to 40 times annually. There seems to be an increasing trend in recent quarters, suggesting either improved payment terms with suppliers or delays in settling payables. A higher turnover ratio may indicate a more efficient use of trade credit.

The working capital turnover ratio reflects the company's ability to generate sales revenue in relation to its working capital. Rush Enterprises A Inc's working capital turnover has shown a decreasing trend over the years, indicating a decline in sales generated per dollar of working capital. This may suggest inefficiencies in working capital management or a decrease in operational efficiency.

In summary, Rush Enterprises A Inc should closely monitor and address the fluctuations in its activity ratios to enhance operational efficiency, optimize working capital utilization, and maintain healthy cash flow management.

Average number of days

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
Days of inventory on hand (DOH) days 104.02 114.25 108.94 117.69 103.84 98.64 98.26 92.58 92.93 96.10 100.29 95.09 92.31 67.98 73.70 84.43 81.15 87.51 85.67 91.56
Days of sales outstanding (DSO) days 17.00 13.18 13.24 14.05 13.03 12.36 11.28 11.25 12.87 12.34 14.28 12.49 11.83 10.72 11.72 14.59 15.14 11.87 11.41 13.63
Number of days of payables days 14.20 10.10 9.58 10.49 9.35 10.45 11.21 12.38 11.16 13.20 13.82 14.65 11.07 11.55 11.24 13.11 10.47 10.26 8.36 9.45

Rush Enterprises A Inc's activity ratios reflect its efficiency in managing inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH): The trend in DOH indicates the average number of days it takes for the company to sell its inventory. A decreasing trend from 2020 to 2022 suggests that the company is managing its inventory more efficiently. However, a slight increase in DOH in 2023 and a significant jump in 2024 may indicate potential issues with inventory management or changes in the company's sales patterns that need to be addressed.

2. Days of Sales Outstanding (DSO): DSO represents the average number of days it takes for the company to collect its accounts receivable. Rush Enterprises A Inc has shown a relatively stable DSO over the years, with minor fluctuations. A higher DSO could indicate inefficiencies in collecting payments from customers, while a lower DSO suggests effective credit and collection policies.

3. Number of Days of Payables: This ratio reflects how many days it takes for the company to pay off its suppliers. Rush Enterprises A Inc has managed its payables efficiently from 2020 to 2024, with a decreasing trend in the number of days of payables. This suggests that the company has been able to negotiate favorable credit terms with its suppliers.

Overall, analyzing these activity ratios can provide insights into the company's operational efficiency and effectiveness in managing working capital. Any significant deviations from industry benchmarks or historical performance should be carefully assessed to identify areas for improvement.

Long-term

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
Fixed asset turnover 4.83 4.99 5.19 5.25 5.33 5.27 5.32 5.30 5.19 4.83 4.40 4.31 4.01 4.36 4.24 3.96 3.93 3.90 4.16 4.50
Total asset turnover 1.69 1.68 1.76 1.70 1.82 1.84 1.86 1.88 1.86 1.74 1.62 1.64 1.64 1.83 1.72 1.56 1.59 1.59 1.70 1.77

Based on the provided data for Rush Enterprises A Inc, let's analyze the long-term activity ratios:

1. Fixed Asset Turnover: This ratio measures how efficiently the company is utilizing its fixed assets to generate sales. The trend in Rush Enterprises A Inc's fixed asset turnover ratio shows an increasing pattern from March 31, 2020, to December 31, 2024, fluctuating between 3.90 and 5.33. The company's fixed asset turnover has generally improved over the years, indicating effective utilization of its fixed assets to generate revenue.

2. Total Asset Turnover: This ratio evaluates the efficiency of the company in utilizing all its assets to generate revenue. Rush Enterprises A Inc's total asset turnover ratio fluctuates between 1.56 and 1.88 from March 31, 2020, to December 31, 2024. The ratio exhibits some variability but generally maintains around the range of 1.56 to 1.88, indicating fluctuations in the company's ability to generate revenue from its total assets efficiently.

Overall, both the fixed asset turnover and total asset turnover ratios for Rush Enterprises A Inc reflect varying degrees of efficiency in asset utilization over the years. The increasing trend in fixed asset turnover suggests improved efficiency in utilizing fixed assets, while the fluctuations in total asset turnover may indicate changes in the overall asset efficiency of the company.