Rush Enterprises A Inc (RUSHA)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	7,925,020	7,101,670	5,126,140	4,735,940	5,809,850
Total current assets	US$ in thousands	2,260,300	1,867,740	1,324,450	1,357,730	1,712,550
Total current liabilities	US$ in thousands	1,673,310	1,428,670	1,003,500	1,026,790	1,507,390
Working capital turnover		13.50	16.17	15.97	14.31	28.32

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,925,020K ÷ ($2,260,300K – $1,673,310K)
= 13.50

The working capital turnover of Rush Enterprises A Inc has exhibited fluctuations over the past five years, ranging from a low of 13.50 in 2023 to a high of 28.32 in 2019. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio is generally favorable as it suggests that the company is able to generate more sales revenue using its working capital.

In 2023, the working capital turnover decreased to 13.50 from 16.17 in 2022, indicating a potential decrease in efficiency in utilizing working capital to generate sales. However, it is important to consider the industry norms and compare this ratio with peers to gain a better understanding of the company's performance.

The company experienced a significant increase in working capital turnover from 2019 to 2020, indicating a substantial improvement in efficiency during that period. However, the ratio has since fluctuated, suggesting varying levels of working capital utilization efficiency in recent years.

Overall, the trend in Rush Enterprises A Inc's working capital turnover highlights the importance of closely monitoring and managing working capital to optimize efficiency and support sustainable business operations.