Rush Enterprises A Inc (RUSHA)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	512,381	506,113	309,036	154,605	216,405
Total assets	US$ in thousands	4,364,240	3,821,070	3,119,980	2,985,390	3,407,330
Operating ROA		11.74%	13.25%	9.91%	5.18%	6.35%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $512,381K ÷ $4,364,240K
= 11.74%

The operating return on assets (ROA) for Rush Enterprises A Inc has shown a fluctuating trend over the five-year period from 2019 to 2023. In 2023, the operating ROA decreased to 11.74% from 13.25% in 2022, indicating a slight decline in the company's ability to generate operating income relative to its total assets. Despite this decline, the 2023 operating ROA remains higher than the levels observed in 2020 and 2021, suggesting an overall improvement in efficiency in converting assets into operating income.

The highest operating ROA was recorded in 2022 at 13.25%, reflecting a peak performance in asset utilization and operating profitability during that year. In contrast, the lowest operating ROA during the period was seen in 2020 at 5.18%, indicating a significant decrease in the company's ability to generate operating income compared to the value of its assets.

Overall, the fluctuation in Rush Enterprises A Inc's operating ROA over the five-year period indicates varying levels of efficiency in utilizing assets to generate operating earnings. It is essential for the company to monitor and analyze the factors influencing these fluctuations to maintain and improve its operational performance and profitability.