Rush Enterprises A Inc (RUSHA)

Net profit margin

		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
Net income (ttm)	US$ in thousands	304,153	307,448	308,594	328,208	347,055	367,334	377,432	389,384	391,382	361,695	340,718	288,535	241,415	213,801	178,341	137,113	114,887	97,616	102,781	127,586
Revenue (ttm)	US$ in thousands	7,804,750	7,824,620	7,909,230	7,885,250	7,925,020	7,778,500	7,662,050	7,450,240	7,101,670	6,530,530	5,932,760	5,457,540	5,126,150	5,082,550	4,994,600	4,681,090	4,735,940	4,785,440	5,206,130	5,748,180
Net profit margin		3.90%	3.93%	3.90%	4.16%	4.38%	4.72%	4.93%	5.23%	5.51%	5.54%	5.74%	5.29%	4.71%	4.21%	3.57%	2.93%	2.43%	2.04%	1.97%	2.22%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $304,153K ÷ $7,804,750K
= 3.90%

The net profit margin of Rush Enterprises A Inc has shown fluctuations over the periods indicated in the data. The net profit margin is a key profitability ratio that indicates the percentage of revenue that translates into net income after accounting for all expenses.

From March 31, 2020, where the net profit margin was 2.22%, the margin decreased slightly to 1.97% by June 30, 2020. It then gradually increased over the next few quarters to reach 5.74% by June 30, 2022, reflecting improved profitability. However, the net profit margin decreased slightly in the subsequent quarters, reaching 3.90% by December 31, 2024.

Overall, Rush Enterprises A Inc has shown a generally positive trend in its net profit margin, with some fluctuations. It is crucial for the company to maintain or improve this ratio to ensure sustainable profitability and financial health. Further analysis of the factors impacting profitability during the periods of decline could help in implementing strategies to enhance the net profit margin in the future.