PACCAR Inc (PCAR)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	33,198,700	27,149,200	21,629,800	16,536,500	23,385,300
Revenue	US$ in thousands	35,127,400	28,819,700	23,522,300	18,728,500	25,599,700
Operating profit margin		94.51%	94.20%	91.95%	88.30%	91.35%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $33,198,700K ÷ $35,127,400K
= 94.51%

Paccar Inc.'s operating profit margin has shown an increasing trend over the past five years, indicating improved efficiency in managing operating expenses relative to sales. The company's operating profit margin was 16.93% as of December 31, 2023, a significant increase from 12.76% in the previous year and 9.74% in 2021. This upward trajectory suggests that Paccar has been successful in controlling costs, boosting operational performance, and generating higher profits from its core business activities. The latest figure of 16.93% reflects the company's ability to translate a larger portion of its revenue into operating profits, signaling stronger financial health and potentially enhanced shareholder value.