PACCAR Inc (PCAR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 97.21% | 97.09% | 95.98% | 94.07% | 95.64% |
| Operating profit margin | 94.51% | 94.20% | 91.95% | 88.30% | 91.35% |
| Pretax margin | 16.28% | 13.35% | 10.19% | 8.87% | 12.11% |
| Net profit margin | 13.10% | 10.45% | 7.93% | 6.95% | 9.33% |
Paccar Inc.'s profitability ratios have shown a positive trend over the past five years. The gross profit margin has improved steadily from 19.64% in 2019 to 23.35% in 2023, indicating an increase in sales revenue relative to the cost of goods sold. This suggests that the company has been effective in managing its production costs.
Similarly, the operating profit margin has shown consistent growth, reaching 16.93% in 2023 from 11.62% in 2019. This indicates that Paccar has been able to control its operating expenses effectively while increasing its operating income.
The pretax margin has also demonstrated an upward trajectory, rising from 12.11% in 2019 to 16.28% in 2023. This suggests that the company's pre-tax earnings relative to total revenue have increased, reflecting a stronger financial performance.
Finally, the net profit margin has shown improvement over the years, reaching 13.10% in 2023 from 9.33% in 2019. This indicates that Paccar has been successful in managing its overall expenses, including interest and taxes, resulting in higher net income relative to total revenue.
Overall, Paccar Inc.'s profitability ratios reflect a positive trend, indicating efficient cost management and strong financial performance over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 81.32% | 81.59% | 73.30% | 58.12% | 82.46% |
| Return on assets (ROA) | 11.27% | 9.05% | 6.32% | 4.57% | 8.42% |
| Return on total capital | 209.08% | 29.23% | 20.67% | 15.78% | 31.93% |
| Return on equity (ROE) | 28.97% | 22.87% | 16.09% | 12.35% | 24.60% |
Paccar Inc.'s profitability ratios have shown a generally positive trend over the past five years, indicating the company's ability to generate profits from its assets and capital.
- Operating return on assets (Operating ROA) has steadily increased from 10.49% in 2019 to 14.57% in 2023, reflecting the company's efficiency in generating operating income relative to its assets.
- Return on assets (ROA) has also shown improvement, rising from 8.42% in 2019 to 11.27% in 2023, indicating the company's ability to generate profit from its total assets.
- Return on total capital has consistently increased, reaching 19.75% in 2023 from 14.21% in 2019. This metric demonstrates the company's profitability in generating returns from both equity and debt capital invested.
- Return on equity (ROE) has exhibited a similar upward trend, with a significant improvement from 24.60% in 2019 to 28.97% in 2023, reflecting the firm's ability to generate returns for its shareholders.
Overall, the increasing trend in these profitability ratios suggests that Paccar Inc. has been effectively utilizing its assets and capital to generate profits, which is a positive indicator of the company's financial health and operational efficiency.