Rush Enterprises A Inc (RUSHA)

Solvency ratios

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
Debt-to-assets ratio 0.09 0.05 0.06 0.07 0.07 0.08 0.11 0.10 0.11 0.11 0.11 0.12 0.13 0.13 0.13 0.13 0.13 0.14 0.13 0.13
Debt-to-capital ratio 0.18 0.10 0.12 0.13 0.14 0.16 0.20 0.18 0.19 0.18 0.20 0.22 0.23 0.24 0.26 0.27 0.27 0.29 0.29 0.29
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
Financial leverage ratio 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 2.94 2.99 3.17 3.16

Rush Enterprises A Inc's solvency ratios show the company's ability to meet its long-term financial obligations and the extent of its leverage.

The debt-to-assets ratio has been relatively stable over the period, fluctuating between 0.05 and 0.11. This ratio indicates that only a small portion of the company's assets is financed through debt, suggesting a lower risk of insolvency.

The debt-to-capital ratio also shows a consistent trend, ranging from 0.10 to 0.29. This ratio reflects the proportion of the company's capital structure that is financed through debt. Despite some fluctuation, the company appears to maintain a healthy balance between debt and equity financing.

The debt-to-equity ratio has shown a slight upward trend, indicating increasing reliance on debt financing compared to equity. This ratio has varied between 0.11 and 0.41, with a higher ratio suggesting higher financial risk due to increased debt burden.

The financial leverage ratio has fluctuated notably over the period, ranging from 1.97 to 3.17. This ratio reflects the company's overall financial risk and potential for higher returns for shareholders with increased leverage. The fluctuation in this ratio suggests varying degrees of financial leverage management by the company.

Overall, Rush Enterprises A Inc's solvency ratios show a relatively stable and moderate level of leverage, with some variations over time. It appears that the company has maintained a balanced approach to debt financing, although attention may be needed to monitor and manage the increasing debt-to-equity ratio to mitigate potential financial risks.

Coverage ratios

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
Interest coverage 9.59 11.42 13.89 18.17 26.74 38.59 68.86 121.23 130.25 123.39 76.21 33.33 16.60 9.54 7.34 7.15 7.22 8.06 8.95 9.49

Interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.

Analyzing Rush Enterprises A Inc's interest coverage over the past few quarters, we observe a fluctuating trend. The interest coverage ratio has varied considerably, ranging from a low of 7.15 to a high of 130.25.

In the most recent quarter, as of December 31, 2023, Rush Enterprises A Inc's interest coverage ratio stands at 9.59, reflecting its ability to cover interest payments by 9.59 times. This suggests a moderate level of financial health in terms of meeting interest obligations.

Overall, the trend in the interest coverage ratio for Rush Enterprises A Inc appears to have shown periods of both strength and weakness. It would be important to closely monitor future quarters to assess the company's ability to consistently meet its interest payments and manage its debt obligations effectively.