PACCAR Inc (PCAR)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,632,500 | 33,198,700 | 27,149,200 | 21,629,800 | 16,536,500 |
| Revenue | US$ in thousands | 33,663,800 | 35,127,400 | 28,819,700 | 23,522,300 | 18,728,500 |
| Operating profit margin | 10.79% | 94.51% | 94.20% | 91.95% | 88.30% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $3,632,500K ÷ $33,663,800K
= 10.79%
From the provided data, PACCAR Inc's operating profit margin has shown a consistent upward trend from 88.30% in December 31, 2020, to a peak of 94.51% in December 31, 2023. This indicates that the company has been effectively managing its operating expenses and generating strong profits relative to its revenue during this period.
However, there was a significant drop in the operating profit margin to 10.79% by December 31, 2024. Such a drastic decrease could be attributed to various factors such as increased operating expenses, decreased sales revenue, or one-time extraordinary expenses impacting profitability.
The overall trend suggests that PACCAR Inc has historically maintained a high level of operating efficiency and profitability, but the sharp decline in the operating profit margin in the most recent year may warrant further investigation to identify the underlying causes and consider any potential implications for the company's financial performance going forward.
Peer comparison
Dec 31, 2024