PACCAR Inc (PCAR)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	13,434,100	10,277,500	1,976,000	7,253,400	7,628,700
Total current liabilities	US$ in thousands	23,800	18,000	19,600	25,500	39,900
Current ratio		564.46	570.97	100.82	284.45	191.20

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $13,434,100K ÷ $23,800K
= 564.46

The current ratio of Paccar Inc. has shown a gradual improvement over the past five years, increasing from 1.28 in 2019 to 1.46 in 2023. This indicates that the company's ability to meet its short-term obligations with its current assets has strengthened over time. A current ratio above 1 suggests that Paccar has more current assets than current liabilities, providing a cushion to cover its short-term debts. The trend of increasing current ratio demonstrates a positive liquidity position for Paccar, giving confidence to investors and creditors regarding the company's financial health and ability to manage its short-term obligations effectively.