Rush Enterprises A Inc (RUSHA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.62% | 20.10% | 20.94% | 21.31% | 18.49% |
| Operating profit margin | 6.00% | 6.47% | 7.13% | 6.03% | 3.26% |
| Pretax margin | 5.09% | 5.82% | 7.16% | 6.12% | 3.20% |
| Net profit margin | 3.90% | 4.38% | 5.51% | 4.71% | 2.43% |
Based on the provided data for Rush Enterprises A Inc, the profitability ratios show a mixed performance over the years.
1. Gross Profit Margin: The company's gross profit margin has generally been stable, ranging from 18.49% in 2020 to 21.31% in 2021. However, there was a slight decrease to 19.62% by the end of 2024. This indicates the percentage of revenue that exceeds the cost of goods sold, which reflects the company's pricing strategy and ability to control production costs.
2. Operating Profit Margin: The operating profit margin for Rush Enterprises A Inc has shown improvement, increasing from 3.26% in 2020 to 6.00% in 2024. This ratio reflects the efficiency of the company's operations in generating profits before taxes and interest expenses.
3. Pretax Margin: The pretax margin also demonstrated an upward trend, reaching 7.16% in 2022 before declining slightly to 5.09% in 2024. This ratio represents the percentage of each dollar of revenue that translates into pre-tax profit, taking into account all operating expenses.
4. Net Profit Margin: The net profit margin, which indicates the company's bottom-line profitability after all expenses, showed improvement from 2.43% in 2020 to 4.71% in 2021. However, it then declined to 3.90% by the end of 2024. This ratio reflects the company's ability to control costs and generate profits for its shareholders.
Overall, Rush Enterprises A Inc's profitability ratios suggest a mixed performance with improvements in operating and pre-tax margins but a slight decline in net profit margin over the years. Further analysis of the company's cost structure and revenue generation may provide insights into the factors influencing these profitability metrics.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.14% | 11.74% | 13.25% | 9.91% | 5.18% |
| Return on assets (ROA) | 6.59% | 7.95% | 10.24% | 7.74% | 3.85% |
| Return on total capital | 18.39% | 22.53% | 26.16% | 17.55% | 9.75% |
| Return on equity (ROE) | 14.20% | 18.55% | 22.44% | 16.46% | 9.06% |
Rush Enterprises A Inc has shown an improvement in profitability ratios over the past five years. The Operating return on assets (Operating ROA) increased from 5.18% in 2020 to 10.14% in 2024, with a peak of 13.25% in 2022. This indicates efficiency in generating operating income relative to its total assets.
Similarly, the Return on assets (ROA) also witnessed a positive trend, growing from 3.85% in 2020 to 6.59% in 2024, with the highest ROA of 10.24% recorded in 2022. This ratio reflects the company's ability to generate profits from its assets.
The Return on total capital increased substantially, from 9.75% in 2020 to 18.39% in 2024, with a peak of 26.16% in 2022. This signifies the return generated from total capital employed in the business.
Furthermore, the Return on equity (ROE) also portrayed an upward trajectory, rising from 9.06% in 2020 to 14.20% in 2024, hitting a high of 22.44% in 2022. ROE measures the profitability generated for shareholders from their equity investment.
Overall, Rush Enterprises A Inc's profitability ratios have displayed a positive trend, indicating improving operational efficiency, asset utilization, and return on invested capital and equity over the analyzed period.