PACCAR Inc (PCAR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.35% | 97.21% | 97.09% | 95.98% | 94.07% |
| Operating profit margin | 10.79% | 94.51% | 94.20% | 91.95% | 88.30% |
| Pretax margin | 16.04% | 16.28% | 13.35% | 10.19% | 8.87% |
| Net profit margin | 12.36% | 13.10% | 10.45% | 7.93% | 6.95% |
PACCAR Inc has shown a consistent improvement in its gross profit margin over the years, increasing from 94.07% in 2020 to 97.21% in 2023, before experiencing a slight decline to 17.35% in 2024. This indicates the company's ability to efficiently control production costs and generate profits from its core operations.
Similarly, the operating profit margin of PACCAR Inc has shown a positive trend, rising from 88.30% in 2020 to 94.51% in 2023, before dropping to 10.79% in 2024. This illustrates the company's effectiveness in managing operating expenses and maximizing operational profitability.
The pretax margin of PACCAR Inc has notably increased from 8.87% in 2020 to 16.28% in 2023, showcasing the company's capability to generate profits before accounting for taxes. However, there was a slight decrease to 16.04% in 2024.
Furthermore, the net profit margin of PACCAR Inc has displayed a positive trend, climbing from 6.95% in 2020 to 13.10% in 2023, before slightly decreasing to 12.36% in 2024. This indicates the company’s ability to convert revenue into net income after accounting for all expenses.
Overall, the profitability ratios of PACCAR Inc demonstrate its efficiency in managing costs, generating profits from operations, and maintaining healthy margins over the years, although there was a notable decline in profitability margins in 2024.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.37% | 81.32% | 81.59% | 73.30% | 58.12% |
| Return on assets (ROA) | 9.59% | 11.27% | 9.05% | 6.32% | 4.57% |
| Return on total capital | 20.75% | 209.08% | 29.23% | 20.67% | 15.78% |
| Return on equity (ROE) | 23.77% | 28.97% | 22.87% | 16.09% | 12.35% |
PACCAR Inc's profitability ratios demonstrate positive trends over the years.
1. Operating return on assets (Operating ROA) has shown significant improvement, increasing from 58.12% in 2020 to 81.32% in 2023, before slightly decreasing to 8.37% in 2024. The high Operating ROA values indicate that the company effectively generates operating income relative to its total assets.
2. Return on assets (ROA) has also seen a steady increase, climbing from 4.57% in 2020 to 11.27% in 2023, before settling at 9.59% in 2024. This upward trend suggests that the company is efficiently utilizing its assets to generate profits.
3. Return on total capital has experienced notable fluctuations, with a remarkable spike to 209.08% in 2023, possibly due to specific financial events or accounting adjustments. The ratio returned to 20.75% in 2024, reflecting a normalized level of return on the company's total capital.
4. Return on equity (ROE) has demonstrated consistent growth, rising from 12.35% in 2020 to 28.97% in 2023, before stabilizing at 23.77% in 2024. This indicates that PACCAR Inc is delivering strong returns to its shareholders relative to their equity investment.
Overall, PACCAR Inc's profitability ratios reflect a positive financial performance, with improvements in operating efficiency, asset utilization, and returns to both total capital and equity holders over the period analyzed.