Rush Enterprises A Inc (RUSHA)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	183,725	191,988	191,897	226,292	201,044	219,519	216,694	209,526	148,146	259,693	315,911	316,070	312,048	259,543	215,556	137,540	181,620	86,117	111,346	126,572
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.11	0.11	0.12	0.15	0.14	0.15	0.17	0.19	0.15	0.34	0.34	0.31	0.30	0.24	0.19	0.10	0.12	0.06	0.07	0.08

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($183,725K + $—K) ÷ $1,673,310K
= 0.11

The cash ratio of Rush Enterprises A Inc has shown some fluctuations over the past few quarters.

From December 2019 to June 2020, the cash ratio remained relatively stable, ranging from 0.10 to 0.24, indicating the company had a moderate level of cash reserves relative to its current liabilities during this period.

However, starting from September 2020 to September 2021, there was a significant increase in the cash ratio, reaching a peak of 0.34 in the third quarter of 2021. This surge may suggest that Rush Enterprises A Inc had accumulated a substantial amount of cash relative to its short-term obligations during that time.

Subsequently, from December 2021 to March 2023, the cash ratio declined steadily, indicating a reduction in the company's ability to cover its short-term liabilities solely with cash on hand. The ratio dropped from 0.15 to 0.12 during this period, reflecting a potential decrease in liquidity compared to the previous year.

It is worth noting that the cash ratio improved slightly in the most recent quarter, reaching 0.15 in December 2023. This uptick suggests a slight strengthening of Rush Enterprises A Inc's liquidity position compared to the previous quarter.

Overall, while there have been fluctuations in the cash ratio of Rush Enterprises A Inc over the analyzed periods, it is crucial for the company to maintain a balance between cash reserves and short-term liabilities to ensure its liquidity and financial stability in the long run.