Rush Enterprises A Inc (RUSHA)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	1,531,420	1,593,090	1,487,160	1,092,300	875,467
Revenue	US$ in thousands	7,804,750	7,925,020	7,101,670	5,126,140	4,735,940
Gross profit margin		19.62%	20.10%	20.94%	21.31%	18.49%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,531,420K ÷ $7,804,750K
= 19.62%

The gross profit margin of Rush Enterprises A Inc has shown a fluctuating trend over the five-year period from December 31, 2020, to December 31, 2024. The margin increased from 18.49% in 2020 to 21.31% in 2021, indicating an improvement in the company's ability to generate profit from sales after accounting for cost of goods sold. However, in the following years, the gross profit margin slightly declined to 20.94% in 2022 and 20.10% in 2023. By the end of the period in 2024, the margin decreased further to 19.62%.

This declining trend in the gross profit margin may suggest increasing costs of goods sold relative to sales revenues or pricing pressures within the industry impacting the profitability of Rush Enterprises A Inc. It is important for the company to closely monitor and manage its cost structure and pricing strategies to maintain and potentially improve its gross profit margin in the future.