Rush Enterprises A Inc (RUSHA)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	514,749	528,387	316,110	161,450	220,010
Long-term debt	US$ in thousands	414,002	275,433	334,926	387,982	438,413
Total stockholders’ equity	US$ in thousands	1,870,880	1,744,490	1,466,750	1,268,040	1,159,490
Return on total capital		22.53%	26.16%	17.55%	9.75%	13.77%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $514,749K ÷ ($414,002K + $1,870,880K)
= 22.53%

Rush Enterprises A Inc's return on total capital has fluctuated over the past five years. In 2023, the company's return on total capital was 22.53%, which decreased compared to the previous year's 26.16%. This indicates a slight decline in the company's efficiency in generating profits from its total capital. However, the return on total capital in 2023 is still higher than the levels seen in 2020 and 2019, signifying an overall improvement in performance over the longer term. It is important to monitor this ratio closely to ensure the company is effectively utilizing its total capital to generate returns for its shareholders.