Rush Enterprises A Inc (RUSHA)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	4,364,240	3,821,070	3,119,980	2,985,390	3,407,330
Total stockholders’ equity	US$ in thousands	1,870,880	1,744,490	1,466,750	1,268,040	1,159,490
Financial leverage ratio		2.33	2.19	2.13	2.35	2.94

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,364,240K ÷ $1,870,880K
= 2.33

The financial leverage ratio of Rush Enterprises A Inc has fluctuated over the past five years, ranging from 2.13 to 2.94. The ratio measures the company's level of debt relative to its equity, indicating the extent to which the company relies on debt financing.

The company's financial leverage ratio was at its lowest in 2021 at 2.13, suggesting a lower proportion of debt in the company's capital structure compared to other years. This could indicate a conservative approach to debt management during that period.

In contrast, the ratio peaked at 2.94 in 2019, indicating a higher reliance on debt financing in that year. This elevated ratio may signal increased financial risk and potential vulnerability to economic downturns or interest rate fluctuations.

Overall, the trend in Rush Enterprises A Inc's financial leverage ratio shows some fluctuations, suggesting varying levels of debt usage over the years. It is important for investors and analysts to monitor this ratio to assess the company's financial stability and risk exposure.