Rush Enterprises A Inc (RUSHA)

Financial leverage 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
Total assets	US$ in thousands	4,617,550	4,648,470	4,506,530	4,629,010	4,364,240	4,218,050	4,126,320	3,969,550	3,821,070	3,742,580	3,669,370	3,321,550	3,119,980	2,777,330	2,912,120	3,008,420	2,985,390	3,010,690	3,064,600	3,242,660
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
Financial leverage ratio		2.16	2.23	2.25	2.39	2.33	2.22	2.21	2.19	2.19	2.26	2.28	2.15	2.13	1.97	2.14	2.30	2.35	2.45	2.58	2.78

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,617,550K ÷ $2,141,550K
= 2.16

The financial leverage ratio of Rush Enterprises A Inc has been showing a decreasing trend from March 31, 2020, where it stood at 2.78, to December 31, 2024, where it decreased to 2.16. This ratio indicates that for every dollar of equity, the company has approximately $2.16 of debt by the end of December 2024. The decreasing trend in the financial leverage ratio suggests that the company has been relying less on debt financing over the years. It is important to note that a lower financial leverage ratio signifies lower financial risk and dependency on debt to finance its operations and investments. Overall, the decreasing trend in the financial leverage ratio of Rush Enterprises A Inc may indicate a more conservative approach to financing and a healthier financial position.