Rush Enterprises A Inc (RUSHA)

Debt-to-equity 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-equity ratio		0.19	0.19	0.20	0.27	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

December 31, 2024 calculation

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

The debt-to-equity ratio of Rush Enterprises A Inc has shown a declining trend from March 31, 2020, to December 31, 2024. The ratio decreased gradually from 0.37 on March 31, 2020, to 0.19 by December 31, 2024. This indicates that the company has been reducing its reliance on debt and becoming more reliant on equity financing over the period analyzed. A lower debt-to-equity ratio generally signifies a lower financial risk for the company as it indicates a smaller proportion of debt in relation to equity. The significant drop in the ratio between March 31, 2024, and June 30, 2024, from 0.27 to 0.20, followed by a relatively stable ratio thereafter, could suggest a strategic shift in the company's capital structure or financial management approach. Overall, the decreasing trend in the debt-to-equity ratio may indicate a more conservative financial strategy adopted by Rush Enterprises A Inc over the analyzed period.