Rush Enterprises A Inc (RUSHA)

Return on equity (ROE)

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
Net income (ttm) US$ in thousands 304,153 307,448 308,594 328,208 347,055 367,334 377,432 389,384 391,382 361,695 340,718 288,535 241,415 213,801 178,341 137,113 114,887 97,616 102,781 127,586
Total stockholders’ equity US$ in thousands 2,141,550 2,083,130 2,003,390 1,935,500 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
ROE 14.20% 14.76% 15.40% 16.96% 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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $304,153K ÷ $2,141,550K
= 14.20%

Rush Enterprises A Inc's return on equity (ROE) has shown some fluctuations over the past few years. The ROE increased steadily from March 2020 to June 2022, indicating improved profitability and efficient use of shareholders' equity. The highest ROE was reported in December 2022 at 22.44%, suggesting that the company was generating significant returns for its shareholders during that period.

However, after reaching its peak in December 2022, the ROE started to decline gradually. This downward trend continued until December 2024, with the ROE decreasing to 14.20%. The declining ROE could imply that the company's profitability and efficiency in utilizing equity capital have weakened over this period.

Overall, while Rush Enterprises A Inc experienced a period of strong ROE growth followed by a gradual decline, it is essential for the company to assess factors impacting profitability and efficiency to maintain sustainable returns for its shareholders in the future.