Rush Enterprises A Inc (RUSHA)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	461,055	484,563	497,619	507,085	508,624	470,794	442,383	377,390	313,683	276,849	228,928	176,691	151,723	131,454	139,736	171,634	189,523	218,151	220,122	204,644
Revenue (ttm)	US$ in thousands	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	5,809,840	6,032,580	5,809,460	5,613,730
Pretax margin		5.82%	6.23%	6.49%	6.81%	7.16%	7.21%	7.46%	6.92%	6.12%	5.45%	4.58%	3.77%	3.20%	2.75%	2.68%	2.99%	3.26%	3.62%	3.79%	3.65%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $461,055K ÷ $7,925,020K
= 5.82%

The pretax margin of Rush Enterprises A Inc has shown fluctuating trends over the past five years. The pretax margin measures a company's ability to generate profits before taxes relative to its total revenue.

From 2019 to 2020, there was a gradual decline in the pretax margin, reaching a low of 2.68% in Q2 2020. However, there was a notable improvement in the pretax margin starting in Q4 2020, with the margin steadily increasing to 7.16% in Q4 2022.

In the most recent quarters, the pretax margin has shown some volatility, ranging from 5.82% in Q4 2023 to 6.81% in Q2 2023. This variability may indicate changing profitability dynamics within the company during these periods.

Overall, the upward trend in the pretax margin from 2020 to 2022 suggests that Rush Enterprises A Inc implemented strategies to enhance profitability. However, the recent fluctuations in the pretax margin indicate the need for further monitoring and analysis to understand the factors driving these changes.