Rush Enterprises A Inc (RUSHA)

Return on total capital

		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 interest and tax (EBIT) (ttm)	US$ in thousands	514,749	531,079	536,216	536,612	528,387	483,317	448,902	380,529	316,110	279,111	231,972	182,156	161,450	146,852	161,771	199,532	220,010	249,061	247,810	228,754
Long-term debt	US$ in thousands	414,002	202,824	245,277	262,467	275,433	307,065	401,760	338,426	334,926	309,014	332,165	369,587	387,982	385,408	408,580	426,727	438,413	462,646	457,531	438,794
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
Return on total capital		22.53%	25.26%	25.37%	25.88%	26.16%	24.60%	22.30%	20.20%	17.55%	16.21%	13.71%	10.85%	9.75%	9.11%	10.14%	12.53%	13.77%	15.57%	15.77%	15.03%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 shown a generally positive trend over the past five years. The return on total capital has consistently increased from 15.03% in March 2019 to 22.53% in December 2023, indicating a steady improvement in the company's ability to generate profits from its total capital.

The company's return on total capital reached a peak of 26.16% in December 2022 before experiencing a slight decrease in the following quarters. Despite these fluctuations, the return on total capital has remained above 20% since March 2021, signaling a strong performance in utilizing its capital efficiently to generate earnings.

Overall, the increasing trend in return on total capital reflects Rush Enterprises A Inc's effective management of its capital resources and ability to generate returns for its shareholders. This metric demonstrates the company's profitability and efficiency in using its total capital to drive business growth and create value for its stakeholders.