Rush Enterprises A Inc (RUSHA)

Liquidity ratios

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
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
Quick ratio 0.36 0.27 0.27 0.26 0.28 0.26 0.26 0.30 0.32 0.31 0.35 0.35 0.31 0.53 0.51 0.49 0.50 0.38 0.33 0.26
Cash ratio 0.14 0.11 0.10 0.09 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

Rush Enterprises A Inc's liquidity ratios show a gradual improvement over the years. The current ratio increased from 1.15 as of March 31, 2020, to 1.43 as of March 31, 2024. This indicates the company's ability to meet its short-term obligations improved consistently, with a peak of 1.52 as of September 30, 2021, before slightly decreasing.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also displayed an upward trend. It rose from 0.26 on March 31, 2020, to 0.36 on December 31, 2024. This implies that the company has sufficient liquid assets to cover its immediate liabilities, with fluctuations observed over the years.

Moreover, the cash ratio, which focuses solely on cash and cash equivalents, increased from 0.10 as of March 31, 2020, to 0.14 as of December 31, 2024. The steady rise in this ratio suggests that the company's ability to pay off its current liabilities with its cash holdings improved over the years, albeit with some variability in the values.

Overall, Rush Enterprises A Inc's liquidity ratios reflect a positive liquidity position and an improved ability to meet its short-term financial obligations over the analyzed period.

Additional liquidity measure

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
Cash conversion cycle days 106.81 117.32 112.59 121.25 107.53 100.55 98.33 91.45 94.64 95.24 100.75 92.94 93.07 67.15 74.18 85.91 85.83 89.12 88.72 95.74

The cash conversion cycle of Rush Enterprises A Inc has shown fluctuations over the past few years. It decreased from 95.74 days on March 31, 2020, to 74.18 days on June 30, 2021, indicating an improvement in the company's ability to convert resources into cash. However, the cycle increased again to 121.25 days on March 31, 2024.

A higher cash conversion cycle implies that the company is taking longer to convert its investments in inventory and other resources into cash from sales. This may indicate inefficiencies in the company's working capital management, potentially leading to higher financing costs or reduced profitability.

It is crucial for Rush Enterprises A Inc to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of resources and maintain healthy liquidity levels. Additionally, the company should focus on streamlining its operating cycle by efficiently managing inventory, accounts receivable, and accounts payable to enhance its overall financial performance.