Rush Enterprises A Inc (RUSHA)

Debt-to-equity 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-equity ratio		0.22	0.11	0.13	0.14	0.16	0.19	0.25	0.22	0.23	0.22	0.24	0.28	0.31	0.31	0.34	0.37	0.38	0.41	0.41	0.41

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $414,002K ÷ $1,870,880K
= 0.22

The debt-to-equity ratio of Rush Enterprises A Inc has shown fluctuations over the past five years, indicating changes in the company's capital structure and financial leverage. The ratio has generally ranged between 0.11 and 0.41 during this period.

From December 2019 to December 2023, the debt-to-equity ratio increased from 0.41 to 0.22, then gradually rose to 0.22 as of December 31, 2023. This suggests that the company reduced its reliance on debt financing and strengthened its equity position over the analyzed period.

The trend in the debt-to-equity ratio reflects a decreasing level of financial risk as the company has sustained its ability to cover obligations using equity financing. However, it is essential to monitor the ratio moving forward to assess the company's ongoing financial health and risk management strategies.