Rush Enterprises A Inc (RUSHA)

The solvency ratios of Rush Enterprises A Inc indicate the company's ability to meet its long-term financial obligations and manage its debt levels effectively.

- Debt-to-assets ratio has shown a fluctuating trend over the past five years, with a low of 0.07 in 2022 and a high of 0.13 in 2020 and 2019. The ratio decreased to 0.09 in 2023, indicating a lower reliance on debt to finance company assets.

- Debt-to-capital ratio has also displayed variability, ranging from 0.14 in 2022 to 0.27 in 2019. The ratio increased slightly to 0.18 in 2023, signaling that the company is using a larger proportion of debt in its capital structure compared to the previous year.

- Debt-to-equity ratio has exhibited a similar pattern, decreasing from 0.38 in 2019 to 0.22 in 2023. The lower ratio implies that the company's equity is a larger source of financing compared to debt, which is a positive sign for solvency.

- Financial leverage ratio has shown a more consistent downward trend from 2.94 in 2019 to 2.33 in 2023. This suggests that the company is relying less on debt to support its operations and has improved its ability to cover interest payments.

Overall, the trend towards lower debt ratios and improved leverage ratios indicates that Rush Enterprises A Inc is gradually strengthening its financial position and reducing its reliance on debt for funding, which may enhance its long-term solvency and financial stability.

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Coverage ratios

The interest coverage ratio for Rush Enterprises A Inc has exhibited variability over the past five years. In 2021, the company had a significantly high interest coverage ratio of 130.25, indicating that the company generated sufficient earnings to cover its interest expenses 130 times over. This exceptionally high ratio may suggest a strong financial position and low financial risk.

Conversely, in 2019, the interest coverage ratio was 7.22, reflecting a lower ability to cover interest expenses from earnings. However, this ratio improved in the following years, reaching 26.74 in 2022 and further increasing to 9.59 in 2023. These ratios indicate an improvement in the company's ability to meet its interest obligations from operating earnings over time.

Overall, the fluctuations in the interest coverage ratio suggest that Rush Enterprises A Inc has experienced varying levels of financial stability and efficiency in managing its interest expenses in the past five years.