Rush Enterprises A Inc (RUSHA)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,804,750 | 7,925,020 | 7,101,670 | 5,126,140 | 4,735,940 |
| Total current assets | US$ in thousands | 2,389,720 | 2,260,300 | 1,867,740 | 1,324,450 | 1,357,730 |
| Total current liabilities | US$ in thousands | 1,650,120 | 1,673,310 | 1,428,670 | 1,003,500 | 1,026,790 |
| Working capital turnover | 10.55 | 13.50 | 16.17 | 15.97 | 14.31 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,804,750K ÷ ($2,389,720K – $1,650,120K)
= 10.55
The working capital turnover of Rush Enterprises A Inc has shown a generally increasing trend over the past five years, indicating an improvement in the efficiency of utilizing its working capital to generate sales revenue. The ratio increased from 14.31 in December 31, 2020, to 15.97 in December 31, 2021, and further to 16.17 in December 31, 2022, showcasing a positive trajectory.
However, there was a slight decrease in the working capital turnover to 13.50 in December 31, 2023, which may suggest a temporary dip in the efficiency of working capital utilization. This could be a result of various factors such as changes in inventory management or sales collection processes during that period.
Subsequently, there was a more significant decline to 10.55 in December 31, 2024, which could indicate a potential issue with managing working capital efficiently to support sales operations. It would be advisable for the company to investigate the reasons behind this decrease and implement strategies to enhance working capital efficiency going forward.
Peer comparison
Dec 31, 2024