Rush Enterprises, Inc. cash flow to debt ratio of 62.78% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Rush Enterprises, Inc.'s free cash flow has increased 207.37% from $186.50M last year to $573.25M, signaling increasing performance

Rush Enterprises, Inc.'s debt to equity ratio is 0.64, which means that the company's assets are unhealthy financed, signaling financial risk.

Rush Enterprises, Inc.'s debt has decreased relative to shareholder equity from 0.81 last year to 0.64 today, signaling strengthened financials

Rush Enterprises, Inc. has a net debt to EBITDA ratio of 2.07x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Rush Enterprises, Inc.'s interest coverage ratio of 11.83 indicates that earnings with good margin can cover interest payments on company debt

Rush Enterprises, Inc.'s profit margin has decreased (5.95%) in the last year from 3.90% to 3.67%, signaling decreasing performance

Rush Enterprises, Inc.'s short-term assets of $2.09B exceed its short-term liabilities of $1.49B

Rush Enterprises, Inc.'s return on assets of 5.69% is higher than the 5.00% threshold, indicating efficient asset utilization

Rush Enterprises, Inc.'s return on equity of 11.76%, is lower than 15.00%, indicating bad performance

Rush Enterprises, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Rush Enterprises, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Rush Enterprises, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Rush Enterprises, Inc. has a free cash flow yield of 9.20%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Rush Enterprises, Inc.'s yearly earnings has decreased 13.27% since last year from $304.15M to $263.78M, signaling decreasing performance

Rush Enterprises, Inc.'s yearly revenue has decreased 4.75% since last year from $7.80B to $7.43B, signaling decreasing performance

ROIC 7.17% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Rush Enterprises, Inc.'s 3-year revenue CAGR of 1.54% is positive, indicating growing revenue over the past 3 years

Rush Enterprises, Inc. had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Rush Enterprises, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Rush Enterprises, Inc. is overvalued relative to its fair value price of 63.45 based on Discounted Cash Flow model

Rush Enterprises, Inc. has an earnings yield of 4.24%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Rush Enterprises, Inc. is overvalued relative to its fair value price of 24.77 based on EBITDA multiple model

Rush Enterprises, Inc. has an EV/EBITDA ratio of 11.70x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Rush Enterprises, Inc. is undervalued relative to its fair value price of 105.76 based on Earnings Fair Value model

Rush Enterprises, Inc. has a PEG-ratio over 1 which is considered overvalued

Rush Enterprises, Inc. has a price-to-book ratio of 2.66x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Rush Enterprises, Inc. has a price-to-sales ratio of 0.86x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue