Rush Enterprises A Inc (RUSHA)

Current ratio

		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
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
Current ratio		1.45	1.40	1.40	1.43	1.35	1.25	1.29	1.30	1.31	1.27	1.34	1.35	1.32	1.52	1.41	1.36	1.32	1.25	1.20	1.15

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,389,720K ÷ $1,650,120K
= 1.45

Rush Enterprises A Inc's current ratio has displayed fluctuating trends over the indicated periods, ranging from 1.15 to 1.52. The current ratio indicates the company's ability to cover its short-term obligations with its current assets. A current ratio below 1 suggests that a company may have difficulty meeting its short-term liabilities, while a ratio above 1 indicates that it has sufficient current assets to cover its short-term debts.

Analyzing the data provided, we can observe that the current ratio generally increased from March 31, 2020, until reaching its peak at 1.52 on September 30, 2021. This improvement suggests an enhanced liquidity position and a strengthened ability to meet its short-term obligations during this period. However, the current ratio declined thereafter, falling to 1.25 by September 30, 2023, before recovering slightly to 1.45 by December 31, 2024.

Although fluctuations in the current ratio are common and could be influenced by various factors such as changes in current assets and liabilities, it is essential for Rush Enterprises A Inc to closely monitor and manage its liquidity position to ensure it maintains a healthy balance between current assets and current liabilities in the long run.