Rush Enterprises A Inc (RUSHA)

Working capital 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
Revenue (ttm) US$ in thousands 7,804,750 7,824,620 7,909,230 7,885,250 7,925,020 7,778,500 7,662,050 7,450,240 7,101,670 6,530,530 5,932,760 5,457,540 5,126,150 5,082,550 4,994,600 4,681,090 4,735,940 4,785,440 5,206,130 5,748,180
Total current assets US$ in thousands 2,389,720 2,460,390 2,377,700 2,517,000 2,260,300 2,145,780 2,087,800 1,973,950 1,867,740 1,809,360 1,742,750 1,523,580 1,324,450 1,177,990 1,306,280 1,396,750 1,357,730 1,366,410 1,398,340 1,557,600
Total current liabilities US$ in thousands 1,650,120 1,752,030 1,697,900 1,757,330 1,673,310 1,720,120 1,620,840 1,513,080 1,428,670 1,419,380 1,299,550 1,128,700 1,003,500 772,725 928,811 1,028,310 1,026,790 1,089,260 1,163,650 1,351,840
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (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 exhibited a declining trend over the periods analyzed. Starting at a robust 27.94 in March 2020, it gradually decreased to 10.38 by March 2024. This indicates that the company's ability to efficiently utilize its working capital to generate sales revenue has decreased over time. It peaked at 18.27 in September 2023, showing a temporary improvement, but then declined again. A working capital turnover below 1 suggests that the company may be having difficulty effectively leveraging its working capital to generate revenue. Continuous monitoring and analysis of this ratio are crucial for understanding how efficiently the company is managing its working capital resources.