Rush Enterprises A Inc (RUSHA)

Debt-to-capital ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 408,440 414,002 275,433 334,926 387,982
Total stockholders’ equity US$ in thousands 2,141,550 1,870,880 1,744,490 1,466,750 1,268,040
Debt-to-capital ratio 0.16 0.18 0.14 0.19 0.23

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $408,440K ÷ ($408,440K + $2,141,550K)
= 0.16

Based on the provided data, Rush Enterprises A Inc's debt-to-capital ratio has shown a declining trend over the past five years. The ratio decreased from 0.23 as of December 31, 2020, to 0.19 as of December 31, 2021, indicating a reduction in the company's reliance on debt relative to its total capital.

Subsequently, the debt-to-capital ratio continued to decline, reaching 0.14 as of December 31, 2022, signaling a further improvement in the company's financial leverage position. However, the ratio slightly increased to 0.18 as of December 31, 2023, before decreasing again to 0.16 as of December 31, 2024.

Overall, the decreasing trend in Rush Enterprises A Inc's debt-to-capital ratio signifies a strengthening balance sheet and a lower level of financial risk associated with debt obligations relative to the company's total capital structure during the period under review.