PACCAR Inc (PCAR)
Total 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 |
| Total assets | US$ in thousands | 43,418,900 | 40,823,400 | 33,275,500 | 29,509,400 | 28,450,000 |
| Total asset turnover | 0.78 | 0.86 | 0.87 | 0.80 | 0.66 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $33,663,800K ÷ $43,418,900K
= 0.78
Based on the data provided, PACCAR Inc's total asset turnover has shown a fluctuating trend over the past five years. The total asset turnover ratio measures the efficiency at which the company utilizes its assets to generate sales.
In December 2020, the total asset turnover was 0.66, indicating that for every dollar of assets, PACCAR generated $0.66 in sales. Over the following years, there was an improvement in the ratio, reaching 0.87 by December 2022, suggesting that the company was able to generate more revenue relative to its asset base.
However, in the subsequent years, there was a slight decline in the total asset turnover to 0.78 by December 2024. This may imply a potential decrease in sales generated per dollar of assets, which could be due to changes in the company's operations or asset utilization efficiency.
Overall, while there have been fluctuations in PACCAR Inc's total asset turnover ratio over the years, it is essential for the company to focus on maintaining or improving this ratio to ensure efficient utilization of its assets in driving sales and profitability.
Peer comparison
Dec 31, 2024