Rush Enterprises (Rush Enterprises) Interest Coverage

: 7.36 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Rush Enterprises's Operating Income for the three months ended in Dec. 2023 was $120 Mil. Rush Enterprises's Interest Expense for the three months ended in Dec. 2023 was $-16 Mil. Rush Enterprises's interest coverage for the quarter that ended in Dec. 2023 was 7.36. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Rush Enterprises's Interest Coverage or its related term are showing as below:

RUSHB' s Interest Coverage Range Over the Past 10 Years
Min: 5.3 Med: 10.45 Max: 126.74
Current: 9.53

RUSHB's Interest Coverage is ranked better than
56.55% of 1031 companies
in the Vehicles & Parts industry
Industry Median: 7.69 vs RUSHB: 9.53

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Rush Enterprises Interest Coverage Historical Data

The historical data trend for Rush Enterprises's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Rush Enterprises Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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7.10

15.70

126.74

25.48

9.53

Rush Enterprises Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															15.00	11.62	11.65	8.55	7.36

Competitive Comparison

For the Auto & Truck Dealerships subindustry, Rush Enterprises's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Rush Enterprises Interest Coverage Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Rush Enterprises's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Rush Enterprises's Interest Coverage falls into.

Rush Enterprises Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Rush Enterprises's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Rush Enterprises's Interest Expense was $-54 Mil. Its Operating Income was $512 Mil. And its Long-Term Debt & Capital Lease Obligation was $616 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	511.538	/	-53.694
	=	9.53

Rush Enterprises's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Rush Enterprises's Interest Expense was $-16 Mil. Its Operating Income was $120 Mil. And its Long-Term Debt & Capital Lease Obligation was $616 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	119.878	/	-16.279
	=	7.36

The higher the ratio, the stronger the company's Financial Strength is.

Rush Enterprises (NAS:RUSHB) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Rush Enterprises Interest Coverage Related Terms

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Rush Enterprises (Rush Enterprises) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Rush Enterprises Inc (NAS:RUSHB) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

RUSHA:USA

Address

555 IH-35 South, Suite 500, New Braunfels, TX, USA, 78130

Website

https://www.rushenterprises.com

Rush Enterprises Inc is a full-service, integrated retailer of commercial vehicles and related services. The company operates in a single segment; Truck Segment includes the operation of a network of commercial vehicle dealerships under the name Rush Truck Centers. It sells commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, and Blue Bird and also provides one-stop service for the needs of commercial vehicle customers, including retail sales of new and used commercial vehicles, aftermarket parts sales, service and repair facilities, financing, leasing and rental, and insurance products. The company's business is concentrated in the United States commercial vehicle markets and related aftermarkets.