Rush Enterprises A Inc (RUSHA)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 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 | 28.96 | 25.93 | 23.95 | 26.26 |
| Payables turnover | 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 | 35.78 | 36.16 | 32.99 | 30.89 |
| Working capital turnover | 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 | 28.32 | 28.74 | 31.52 | 33.26 |
Rush Enterprises A Inc has shown varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the periods analyzed.
The inventory turnover ratio has fluctuated between 3.14 and 5.37 over the past five years, indicating the number of times the company sells and replaces its inventory during a specific period. A higher inventory turnover ratio suggests efficient management of inventory, with lower carrying costs and a quicker conversion of inventory into sales.
The receivables turnover ratio has ranged from 23.95 to 34.05, representing the effectiveness of the company in collecting credit sales from its customers. A higher receivables turnover ratio signifies that the company is converting its accounts receivable into cash quickly, which is favorable for maintaining a healthy cash flow.
In terms of payables turnover, Rush Enterprises A Inc has seen fluctuations between 24.92 and 43.67, reflecting how efficiently the company pays its suppliers for goods and services. A higher payables turnover ratio indicates that the company is taking less time to pay its creditors, which can improve relationships and potentially provide access to discounts for early payment.
The working capital turnover ratio has shown variability from 12.71 to 33.26, highlighting how effectively the company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio suggests efficient utilization of resources to support revenue generation and business operations.
Overall, the analysis of Rush Enterprises A Inc's activity ratios indicates that the company has experienced fluctuations in managing its inventory, receivables, payables, and working capital efficiency over the periods examined.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 101.17 | 101.47 | 115.61 | 116.14 |
| Days of sales outstanding (DSO) | days | 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 | 12.61 | 14.08 | 15.24 | 13.90 |
| Number of days of payables | days | 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 | 10.20 | 10.09 | 11.06 | 11.81 |
The activity ratios for Rush Enterprises A Inc indicate the efficiency of its operations in managing inventory, collecting receivables, and paying its suppliers.
1. Days of inventory on hand (DOH) measures how long it takes for the company to sell its inventory. The trend shows an increase in the days of inventory on hand over the past five quarters, indicating a potential buildup of inventory levels. This may suggest that the company is facing challenges in selling its products quickly or may have overstocked inventory.
2. Days of sales outstanding (DSO) reveals the average number of days it takes for the company to collect payment from its customers. The trend shows a slight fluctuation in DSO over the past quarters, with a slight increase in the most recent quarter. This suggests some stability in the company's accounts receivable management, with generally efficient collections.
3. Number of days of payables measures how long it takes for the company to pay its suppliers. The trend in days of payables suggests a relatively stable payment behavior over the quarters, with some fluctuation noted. A decrease in days of payables could indicate a more aggressive payment strategy, while an increase may suggest challenges in managing working capital efficiently.
Overall, an increase in days of inventory on hand coupled with stable days of sales outstanding and days of payables may signal a need for Rush Enterprises A Inc to reassess its inventory management strategies to improve efficiency and optimize working capital utilization. It is essential for the company to strike a balance between inventory levels, collection of receivables, and payment to suppliers to enhance its operational performance and financial health.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 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 | 4.54 | 4.78 | 4.70 | 4.69 |
| Total asset turnover | 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 | 1.71 | 1.77 | 1.65 | 1.64 |
Rush Enterprises A Inc's fixed asset turnover ratio has shown a generally increasing trend over the past few years, indicating that the company has been efficiently utilizing its fixed assets to generate revenues. The ratio stood at 5.33 at the end of December 2023, reflecting an improvement compared to previous quarters.
On the other hand, the total asset turnover ratio has been fluctuating within a narrower range over the same period. It peaked at 1.88 in March 2023 but decreased slightly to 1.82 by the end of December 2023. This may suggest a varying level of efficiency in utilizing all assets to generate sales.
Overall, a higher fixed asset turnover ratio compared to the total asset turnover ratio indicates that Rush Enterprises A Inc is more effective in generating revenue from its fixed assets than from all its assets combined. This could be a positive sign of operational efficiency and effective management of fixed assets within the company.