Rush Enterprises A Inc (RUSHA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.14 | 1.14 | 1.11 | 1.10 |
| Quick ratio | 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 | 0.25 | 0.21 | 0.21 | 0.21 |
| 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 |
The liquidity ratios of Rush Enterprises A Inc show varying trends over the periods considered. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has fluctuated between 1.10 and 1.52. It indicates that the company has generally been able to cover its current liabilities with its current assets, with a peak in September 2021.
On the other hand, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has shown a declining trend from 0.21 to 0.53, indicating a potential decrease in the company's ability to meet its short-term obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, has fluctuated between 0.06 and 0.34. This ratio suggests the company's capacity to cover its current liabilities with cash on hand has had some fluctuations, with a notable improvement in liquidity in September 2021.
Overall, while the current ratio indicates a general ability to meet short-term obligations, the declining trend in the quick ratio raises slight concerns about the company's liquidity position without relying on inventory. The cash ratio provides insight into the company's current liquidity strength, which has shown fluctuations over the periods analyzed.
Additional liquidity measure
| 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 conversion cycle | days | 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 | 103.58 | 105.45 | 119.78 | 118.22 |
The cash conversion cycle for Rush Enterprises A Inc has shown fluctuations over the past years. The company's ability to convert its resources efficiently into cash has varied, with the cycle ranging from 67.15 days to 119.78 days.
In more recent periods, the cash conversion cycle has generally been improving, indicating that the company is managing its working capital more effectively. However, fluctuations can still be observed, suggesting there may be room for further optimization in managing inventory, accounts receivable, and accounts payable.
Overall, the trend in the cash conversion cycle for Rush Enterprises A Inc reflects the company's effectiveness in managing its cash flow and working capital, with recent improvements indicating a positive direction in optimizing operational efficiency.