PACCAR Inc (PCAR)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	35,127,400	28,819,700	23,522,300	18,728,500	25,599,700
Total assets	US$ in thousands	40,823,400	33,275,500	29,509,400	28,450,000	28,361,100
Total asset turnover		0.86	0.87	0.80	0.66	0.90

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $35,127,400K ÷ $40,823,400K
= 0.86

Total asset turnover measures the efficiency with which Paccar Inc. generates revenue in relation to its total assets. A higher total asset turnover indicates better utilization of assets to generate sales.

From 2019 to 2021, Paccar Inc.'s total asset turnover remained relatively stable, fluctuating between 0.66 and 0.90. However, in 2022 and 2023, there was a slight decline in the total asset turnover to 0.87 and 0.86, respectively.

The decrease in total asset turnover in 2022 and 2023 could suggest that Paccar Inc. may be facing challenges in efficiently utilizing its assets to generate revenue compared to the previous years. It is essential for the company to closely monitor and improve its asset management strategies to enhance overall operational efficiency and profitability.