Rush Enterprises A Inc (RUSHA)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		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	0.27	0.29	0.29	0.29

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 displayed some variability over the past five years, with the ratio ranging from 0.10 to 0.29 during this period. The trend indicates that the company has maintained a relatively moderate level of leverage between debt and capital.

In recent quarters, the debt-to-capital ratio has been fluctuating between 0.10 and 0.18, showing a stable financial position with a conservative approach towards debt management. The lower ratios suggest that the company relies more on equity financing rather than debt to fund its operations and growth initiatives.

Overall, Rush Enterprises A Inc's debt-to-capital ratio indicates a balanced capital structure, which may be viewed positively by investors and lenders as it demonstrates a prudent level of debt utilization. The company's ability to manage its debt levels effectively may contribute to its long-term financial stability and resilience in the face of economic uncertainties.