PACCAR Inc (PCAR)

Fixed asset turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 33,663,800 35,127,400 28,819,700 23,522,300 18,728,500
Property, plant and equipment US$ in thousands 3,985,600 3,780,100 3,468,400 3,398,100 3,270,400
Fixed asset turnover 8.45 9.29 8.31 6.92 5.73

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $33,663,800K ÷ $3,985,600K
= 8.45

The fixed asset turnover for PACCAR Inc has shown a consistent upward trend over the 5-year period, starting at 5.73 in December 31, 2020, and reaching 8.45 by December 31, 2024. This indicates that the company is generating more revenue per dollar of fixed assets invested, reflecting improved efficiency in utilizing its fixed assets to generate sales. The significant increase in fixed asset turnover signifies the company's ability to efficiently manage and generate revenue from its investment in fixed assets, which is favorable for shareholders as it indicates better overall asset utilization and financial performance.