Rush Enterprises A Inc (RUSHA)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	468,090	475,970	476,837	495,215	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
Total assets	US$ in thousands	4,617,550	4,648,470	4,506,530	4,629,010	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
Operating ROA		10.14%	10.24%	10.58%	10.70%	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%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $468,090K ÷ $4,617,550K
= 10.14%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its assets used in operations. This ratio indicates the efficiency and profitability of a company in utilizing its assets to generate earnings before interest and taxes (EBIT).

Analyzing Rush Enterprises A Inc's Operating ROA over the past few years, a consistent improvement trend is observed from March 31, 2020, where it stood at 6.01%, reaching a peak of 13.26% on March 31, 2023. During this period, the company demonstrated a steady increase in its ability to generate earnings from its operational assets.

However, there was a slight decline in Operating ROA from the peak in March 2023 to December 31, 2024, where it settled at 10.14%. This could be an indication that the company's efficiency in utilizing its operating assets to generate profits experienced a mild contraction towards the end of the period under review.

Despite the slight decrease in the later periods, Rush Enterprises A Inc maintained a relatively strong Operating ROA, reflecting its effective management of assets to drive profitability. Further analysis of the company's operational performance and asset management strategies would provide valuable insights into the factors influencing the fluctuation in Operating ROA during the period.