Rush Enterprises A Inc (RUSHA)

Debt-to-capital ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	408,440	399,674	396,562	524,450	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
Total stockholders’ equity	US$ in thousands	2,141,550	2,083,130	2,003,390	1,935,500	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
Debt-to-capital ratio		0.16	0.16	0.17	0.21	0.18	0.10	0.12	0.13	0.14	0.16	0.20	0.18	0.19	0.18	0.20	0.22	0.23	0.24	0.26	0.27

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

Rush Enterprises A Inc has exhibited a decreasing trend in its debt-to-capital ratio over the past few years, starting at 0.27 as of March 31, 2020, and reaching 0.16 as of December 31, 2024. This ratio indicates the proportion of the company's total debt to its total capital, which includes both debt and equity.

The decreasing trend in the debt-to-capital ratio suggests that Rush Enterprises A Inc has been effectively managing its debt levels relative to its capital base during the analyzed period. A lower ratio typically indicates a lower financial risk for the company, as it implies a lesser reliance on debt financing compared to equity.

Overall, the decreasing debt-to-capital ratio of Rush Enterprises A Inc reflects a positive financial position in terms of debt management and capital structure optimization.