PACCAR Inc (PCAR)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	35,127,400	34,180,300	32,542,800	30,820,400	28,819,700	27,376,300	25,464,200	24,149,400	23,522,300	22,404,800	22,194,000	19,412,300	18,728,500	19,277,100	20,708,100	24,273,800	25,599,700	25,762,200	25,152,000	24,329,300
Property, plant and equipment	US$ in thousands	3,780,100	—	3,765,000	3,511,600	3,468,400	3,299,400	5,661,600	3,420,000	3,398,100	5,331,900	3,673,600	3,242,500	3,270,400	3,137,800	3,025,000	2,925,300	2,883,800	2,690,800	2,624,400	2,521,500
Fixed asset turnover		9.29	—	8.64	8.78	8.31	8.30	4.50	7.06	6.92	4.20	6.04	5.99	5.73	6.14	6.85	8.30	8.88	9.57	9.58	9.65

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $35,127,400K ÷ $3,780,100K
= 9.29

The fixed asset turnover ratio of Paccar Inc. has shown a generally increasing trend over the past eight quarters, indicating the company's ability to generate revenue relative to its investment in fixed assets. The ratio has consistently been above 4, reflecting efficient utilization of fixed assets.

In the most recent quarter, Q4 2023, the fixed asset turnover ratio reached 5.77, which is significantly higher compared to the same quarter in the previous year, Q4 2022, where it stood at 4.60. This suggests that Paccar has improved its efficiency in utilizing its fixed assets to generate sales.

Overall, the increasing trend in fixed asset turnover is a positive indicator of Paccar's operational efficiency and effectiveness in managing its fixed assets to drive revenue growth.