PACCAR Inc (PCAR)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	27,789,900	998,400	1,004,600	995,400	969,000	933,400	902,600	878,000	834,400	839,900	846,800	878,900	947,000	992,300	1,048,800	1,060,300	1,099,800	1,113,400	1,118,500	1,137,000
Inventory	US$ in thousands	2,367,100	2,644,800	2,783,000	2,742,600	2,576,700	2,622,400	2,712,900	2,609,200	2,198,800	2,382,100	2,232,200	2,222,100	1,976,000	2,516,700	2,054,600	1,465,400	1,221,900	1,124,500	1,136,400	1,270,100
Inventory turnover		11.74	0.38	0.36	0.36	0.38	0.36	0.33	0.34	0.38	0.35	0.38	0.40	0.48	0.39	0.51	0.72	0.90	0.99	0.98	0.90

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $27,789,900K ÷ $2,367,100K
= 11.74

The inventory turnover of PACCAR Inc has fluctuated over the years, ranging from as low as 0.34 to as high as 11.74 times. A decreasing trend can be observed starting from March 31, 2023, when it stood at 0.34, hitting a low point of 0.33 on June 30, 2023, and showing signs of slight recovery in the subsequent periods. The sudden spike to 11.74 on December 31, 2024, is notably significant and may indicate a potential anomaly or change in the company's inventory management practices. Overall, a lower inventory turnover ratio suggests longer time periods for the company to sell its inventory, potentially signaling inefficiencies in inventory management or potential issues with sales and demand. It would be essential for PACCAR Inc to monitor and address these fluctuations to ensure optimal inventory management efficiency in the future.