Rush Enterprises A Inc (RUSHA)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-capital ratio		0.18	0.14	0.19	0.23	0.27

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $414,002K ÷ ($414,002K + $1,870,880K)
= 0.18

The debt-to-capital ratio of Rush Enterprises A Inc has shown a decreasing trend over the past five years, indicating a lower reliance on debt compared to total capital. The ratio decreased from 0.27 in 2019 to 0.18 in 2023, suggesting a more conservative capital structure. This reduction in the ratio may signal better financial health and lower financial risk for the company. It indicates that the company has been financing its operations with a lower proportion of debt relative to its equity and other forms of capital. Overall, the declining trend in the debt-to-capital ratio reflects a prudent debt management strategy by Rush Enterprises A Inc.