Rush Enterprises A Inc (RUSHA)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	347,055	367,334	377,432	389,384	391,382	361,695	340,718	288,535	241,415	213,801	178,341	137,113	114,887	97,616	102,781	127,586	141,583	164,798	167,359	155,127
Total stockholders’ equity	US$ in thousands	1,870,880	1,899,610	1,868,170	1,810,670	1,744,490	1,657,460	1,611,040	1,545,040	1,466,750	1,412,780	1,360,200	1,309,230	1,268,040	1,227,070	1,186,560	1,165,480	1,159,490	1,137,250	1,113,520	1,083,420
ROE		18.55%	19.34%	20.20%	21.50%	22.44%	21.82%	21.15%	18.67%	16.46%	15.13%	13.11%	10.47%	9.06%	7.96%	8.66%	10.95%	12.21%	14.49%	15.03%	14.32%

December 31, 2023 calculation

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

The return on equity (ROE) of Rush Enterprises A Inc has shown a generally positive trend over the past few quarters, starting at 14.32% in March 2019 and increasing to 22.44% by December 2022. However, there was a slight decrease in ROE to 18.55% in December 2023.

Overall, the ROE values have been above 15% since March 2021, indicating that the company has been effectively utilizing its shareholders' equity to generate profits. The peak ROE of 22.44% in December 2022 may suggest that the company was very efficient in generating profits relative to its shareholder equity at that point.

While the recent decrease in ROE in December 2023 could be a signal for further analysis, it is important to understand the factors contributing to this change. Investors and stakeholders may want to closely monitor the company's financial performance and management decisions to ensure sustained profitability and shareholder value creation.