PACCAR Inc (PCAR)

Net profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	4,600,800	4,104,800	3,645,700	3,145,000	3,011,600	2,609,000	2,220,100	1,995,200	1,865,500	1,752,600	1,757,600	1,409,800	1,298,400	1,423,900	1,646,300	2,118,300	2,387,900	2,434,700	2,372,100	2,312,000
Revenue (ttm)	US$ in thousands	35,127,400	34,180,300	32,542,800	30,820,400	28,819,700	27,376,300	25,464,200	24,149,400	23,522,300	22,404,800	22,194,000	19,412,300	18,728,500	19,277,100	20,708,100	24,273,800	25,599,700	25,762,200	25,152,000	24,329,300
Net profit margin		13.10%	12.01%	11.20%	10.20%	10.45%	9.53%	8.72%	8.26%	7.93%	7.82%	7.92%	7.26%	6.93%	7.39%	7.95%	8.73%	9.33%	9.45%	9.43%	9.50%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $4,600,800K ÷ $35,127,400K
= 13.10%

The net profit margin of Paccar Inc. has shown a consistent improvement over the past eight quarters, with a gradual increase from 8.21% in Q1 2022 to 13.10% in Q4 2023. This indicates that the company has been successful in controlling its costs and expenses relative to its revenue generation.

The steady growth in net profit margin reflects Paccar's efficiency in converting its sales into profits, which is a positive signal for investors as it demonstrates the company's ability to manage its operations effectively. The upward trend in the net profit margin suggests that Paccar has been able to enhance its profitability over time, potentially through strategies such as cost-cutting measures, operational efficiencies, or revenue growth.

Overall, the consistent improvement in Paccar Inc.'s net profit margin highlights the company's strong financial performance and ability to generate higher returns for its shareholders.