Rush Enterprises A Inc (RUSHA)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	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	5,809,840	6,032,580	5,809,460	5,613,730
Total current assets	US$ in thousands	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	1,712,550	1,728,780	1,882,540	1,819,460
Total current liabilities	US$ in thousands	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	1,507,390	1,518,850	1,698,250	1,650,680
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

December 31, 2023 calculation

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

The working capital turnover for Rush Enterprises A Inc has shown fluctuations over the past few quarters. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue. A higher turnover ratio suggests that the company is effectively managing its working capital.

In the most recent quarter, the working capital turnover was 13.50, which is lower compared to the previous quarter's figure of 18.27. This may indicate a decrease in the efficiency of the company's working capital management in generating revenue.

Looking at the trend over the past several quarters, there have been periods of increase and decrease in the working capital turnover ratio. For instance, there was a significant jump from 22.18 in June 2020 to 27.94 in March 2020, indicating improved efficiency in working capital management during that period. However, the ratio has generally been on a decreasing trend since then, reaching 13.50 in the most recent quarter.

Overall, it is important for Rush Enterprises A Inc to closely monitor and analyze its working capital turnover ratio to ensure optimal utilization of its resources for revenue generation.