Rush Enterprises A Inc (RUSHA)

Solvency ratios

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
Debt-to-assets ratio 0.09 0.09 0.09 0.11 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
Debt-to-capital ratio 0.16 0.16 0.17 0.21 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
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
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

The solvency ratios of Rush Enterprises A Inc indicate its ability to meet its long-term financial obligations and its overall financial leverage.

1. Debt-to-assets ratio: This ratio has shown a decreasing trend over the years, indicating that the company is relying less on debt to finance its assets. As of December 31, 2024, the ratio stood at 0.09, suggesting that only 9% of the company's assets are financed by debt.

2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has also been declining steadily, demonstrating that the company is becoming less reliant on debt capital in relation to its total capital structure. As of December 31, 2024, the ratio was at 0.16, implying that debt accounts for 16% of the company's capital.

3. Debt-to-equity ratio: The debt-to-equity ratio has followed a downward trajectory, indicating that the company has been reducing its reliance on debt in comparison to equity financing. As of December 31, 2024, the ratio stood at 0.19, reflecting that 19% of the company's equity is funded by debt.

4. Financial leverage ratio: The financial leverage ratio measures the extent to which a company relies on debt financing. The ratio has fluctuated over the years but generally remained within a certain range. As of December 31, 2024, the ratio was at 2.16, suggesting that the company's financial leverage was at a moderate level.

Overall, Rush Enterprises A Inc's solvency ratios indicate a favorable position with decreasing levels of debt relative to assets, capital, and equity, as well as a moderate level of financial leverage. This suggests that the company has been managing its long-term financial obligations effectively and maintaining a relatively stable financial structure.

Coverage ratios

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
Interest coverage 6.61 6.69 7.04 8.17 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

Interest coverage ratio indicates the company's ability to meet its interest obligations on outstanding debt. Rush Enterprises A Inc's interest coverage ratio has shown a consistent improvement over the analyzed periods, starting from 7.15 in March 2020 to a peak of 130.25 in December 2021. This upward trend signifies an enhanced capacity to cover interest expenses with operating profits. However, from March 2022 onwards, the interest coverage ratio began to decline, albeit remaining at a relatively strong level compared to the earlier periods.

The ratio peaked at 130.25 in December 2021, indicating that Rush Enterprises A Inc generated 130.25 times more operating income than what was required to cover its interest payments, reflecting a robust financial position. The subsequent decline in the ratio could indicate a shift in the company's financial performance or increased interest expenses relative to operating income.

As of December 31, 2024, the interest coverage ratio stood at 6.61, still indicating that Rush Enterprises A Inc has sufficient operating income to cover interest payments, albeit at a lower level compared to the peak. It would be essential for stakeholders to monitor this ratio closely to ensure the company can continue to meet its interest obligations comfortably.