Rush Enterprises A Inc (RUSHA)

Debt-to-equity 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-equity ratio		0.19	0.22	0.16	0.23	0.31

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $408,440K ÷ $2,141,550K
= 0.19

Based on the provided data, Rush Enterprises A Inc has shown a decreasing trend in its debt-to-equity ratio over the years. The ratio decreased from 0.31 as of December 31, 2020, to 0.23 as of December 31, 2021, indicating that the company's reliance on debt relative to shareholders' equity decreased during this period.

Subsequently, the debt-to-equity ratio continued to decline to 0.16 as of December 31, 2022, suggesting that the company further reduced its debt levels compared to its equity. This trend shifted slightly in December 31, 2023, with the ratio increasing to 0.22, indicating a slight increase in debt relative to equity.

However, by December 31, 2024, the debt-to-equity ratio decreased again to 0.19, showing that Rush Enterprises A Inc maintained a relatively low debt level in comparison to its equity at the end of the period.

Overall, the decreasing trend in the debt-to-equity ratio of Rush Enterprises A Inc suggests a potential strengthening of the company's financial position and lower financial risk over the years monitored.