Rush Enterprises A Inc (RUSHA)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	347,055	391,382	241,415	114,887	141,583
Total stockholders’ equity	US$ in thousands	1,870,880	1,744,490	1,466,750	1,268,040	1,159,490
ROE		18.55%	22.44%	16.46%	9.06%	12.21%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $347,055K ÷ $1,870,880K
= 18.55%

Rush Enterprises A Inc's return on equity (ROE) has fluctuated over the past five years, ranging from 9.06% in 2020 to 22.44% in 2022. The ROE for 2023 stands at 18.55%, showing a slight decrease from the previous year.

The company's ROE indicates how efficiently it is utilizing shareholders' equity to generate profits. A higher ROE is generally preferred as it signifies that the company is more efficient in generating profits from the equity invested by shareholders.

While the ROE of Rush Enterprises A Inc has seen some variability, it is important to consider the reasons behind these fluctuations. A decreasing ROE could be a cause for concern if not accompanied by valid reasons such as strategic investments or acquisitions. On the other hand, a consistently high ROE might indicate sustainable growth and effective management of the company's assets and operations.

Further analysis and comparison with industry peers can provide a deeper insight into the company's financial performance and competitive position. It is recommended that investors and stakeholders continue to monitor Rush Enterprises A Inc's ROE along with other financial metrics to assess its long-term profitability and sustainability.