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Rush Enterprises Interest Coverage

: 42.61 (As of Jun. 2022)
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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 Jun. 2022 was $135 Mil. Rush Enterprises's Interest Expense for the three months ended in Jun. 2022 was $-3 Mil. Rush Enterprises's interest coverage for the quarter that ended in Jun. 2022 was 42.61. 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: 9.19   Max: 126.74
Current: 64.6


RUSHB's Interest Coverage is ranked better than
83.23% of 936 companies
in the Vehicles & Parts industry
Industry Median: 10.64 vs RUSHB: 64.60

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.

* Premium members only.

Rush Enterprises Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.27 9.62 7.10 15.70 126.74

Rush Enterprises Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only N/A 329.40 48.13 88.04 42.61

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.


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. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Rush Enterprises's Interest Expense was $-2 Mil. Its Operating Income was $308 Mil. And its Long-Term Debt & Capital Lease Obligation was $483 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*307.604/-2.427
=126.74

Rush Enterprises's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Rush Enterprises's Interest Expense was $-3 Mil. Its Operating Income was $135 Mil. And its Long-Term Debt & Capital Lease Obligation was $576 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*134.979/-3.168
=42.61

* 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.

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

Thank you for viewing the detailed overview of Rush Enterprises's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Rush Enterprises Business Description

Rush Enterprises logo
Traded in Other Exchanges
Address
555 IH-35 South, Suite 500, New Braunfels, TX, USA, 78130
Rush Enterprises is the only publicly traded, standalone commercial truck dealer in North America. With 120 locations, it sells 5.6% of new class 8 trucks as the largest truck dealer on the continent. Vehicle sales include class 4-8 new trucks as well as range of used commercial vehicles. Aftermarket parts and service are key drivers of profitability as they generate approximately 30% of revenue and 65% of gross profit. Rush's class 8 customers include large fleets (32%), mid-size fleets (16%), vocational customers (40%), and owner-operators (12%). In 2019, Rush generated $5.8 billion in revenue.

Rush Enterprises Headlines

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