Rush Enterprises A Inc (RUSHA)

Operating profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 468,090 512,381 506,113 309,036 154,605
Revenue US$ in thousands 7,804,750 7,925,020 7,101,670 5,126,140 4,735,940
Operating profit margin 6.00% 6.47% 7.13% 6.03% 3.26%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $468,090K ÷ $7,804,750K
= 6.00%

Based on the data provided, the operating profit margin of Rush Enterprises A Inc has shown a positive trend over the past five years. The company's operating profit margin increased steadily from 3.26% as of December 31, 2020, to 6.00% as of December 31, 2024.

The operating profit margin is a measure of a company's operating efficiency and profitability, indicating how much of each dollar of revenue translates into profit after accounting for operating expenses. The increasing trend in Rush Enterprises A Inc's operating profit margin suggests that the company has been able to effectively manage its operating expenses relative to its revenues over the years.

The peak operating profit margin of 7.13% as of December 31, 2022, indicates a strong performance in controlling costs and generating profits from its core business activities. Although there was a slight decrease in the operating profit margin in 2024 compared to the previous year, the overall trend remains positive.

Overall, the improving trend in Rush Enterprises A Inc's operating profit margin reflects the company's ability to generate more profits from its operations while keeping its operating costs under control. This may indicate effective management of resources and a focus on maximizing profitability.