PACCAR Inc (PCAR)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	34,147,400	27,981,700	22,575,800	17,618,100	24,484,800
Revenue	US$ in thousands	35,127,400	28,819,700	23,522,300	18,728,500	25,599,700
Gross profit margin		97.21%	97.09%	95.98%	94.07%	95.64%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $34,147,400K ÷ $35,127,400K
= 97.21%

Based on the historical data provided for Paccar Inc.'s gross profit margin from 2019 to 2023, there has been some fluctuation in the company's gross profit margin.

In 2019, the gross profit margin was 19.64%, which decreased slightly to 19.35% in 2020. However, in 2021, there was a further decrease to 18.76%. This downward trend reversed in 2022 when the gross profit margin increased to 19.16%. Notably, the gross profit margin saw a significant improvement in 2023, with a substantial increase to 23.35%.

The fluctuation in Paccar Inc.'s gross profit margin over the years may indicate changes in the company's cost structure, pricing strategy, or efficiency in managing production costs. It is essential for the company to monitor and analyze the factors contributing to these fluctuations to maintain and improve its profitability.