Rush Enterprises A Inc (RUSHA)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	512,381	528,810	534,226	526,390	506,113	459,410	422,542	360,310	309,036	272,724	225,423	175,633	154,605	140,489	155,944	194,735	216,405	245,369	245,695	227,329
Total assets	US$ in thousands	4,364,240	4,218,050	4,126,320	3,969,550	3,821,070	3,742,580	3,669,370	3,321,550	3,119,980	2,777,330	2,912,120	3,008,420	2,985,390	3,010,690	3,064,600	3,242,660	3,407,330	3,405,250	3,530,700	3,422,030
Operating ROA		11.74%	12.54%	12.95%	13.26%	13.25%	12.28%	11.52%	10.85%	9.91%	9.82%	7.74%	5.84%	5.18%	4.67%	5.09%	6.01%	6.35%	7.21%	6.96%	6.64%

December 31, 2023 calculation

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

Rush Enterprises A Inc's operating return on assets (operating ROA) has shown fluctuating trends over the past several periods. Starting from a lower level of 6.64% in March 2019, the operating ROA increased and reached a peak of 13.26% in March 2023. This indicates an improvement in the company's ability to generate operating income from its assets during this period.

However, there was a slight decrease in operating ROA in the most recent quarter to 11.74% in December 2023. The decrease in operating ROA could be a cause for concern as it suggests a potential decline in the company's efficiency in generating operating income from its assets compared to the previous periods.

Overall, while the operating ROA of Rush Enterprises A Inc has shown some positive growth over the past few years, the recent decrease in the ratio warrants further investigation to understand the factors affecting the company's operational efficiency and asset utilization.