PACCAR Inc (PCAR)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	3,666,600	32,869,400	33,313,500	33,440,900	32,609,700	31,718,300	30,142,400	28,469,200	27,152,800	25,694,000	23,768,100	22,389,100	21,629,300	20,425,100	20,101,300	17,296,600	16,547,100	17,070,900	18,491,700	22,020,400
Revenue (ttm)	US$ in thousands	33,663,800	34,832,900	35,289,400	35,398,400	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
Operating profit margin		10.89%	94.36%	94.40%	94.47%	92.83%	92.80%	92.62%	92.37%	94.22%	93.85%	93.34%	92.71%	91.95%	91.16%	90.57%	89.10%	88.35%	88.56%	89.30%	90.72%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $3,666,600K ÷ $33,663,800K
= 10.89%

PACCAR Inc's operating profit margin has shown a consistent upward trend from March 31, 2020, through December 31, 2024, with occasional fluctuations. The margin started at 90.72% in March 2020, decreasing slightly to 88.35% by December 31, 2020, before steadily increasing to a peak of 94.47% by March 31, 2024.

However, in the following quarter, there was a significant drop in the operating profit margin to 10.89% by December 31, 2024. This sharp decrease could be indicative of various factors impacting profitability, such as changes in revenue, expenses, or one-time events affecting the bottom line.

It is important for stakeholders to closely monitor the operating profit margin to understand the company's ability to generate profits from its core business operations and to assess its overall financial health and efficiency in managing costs. Further analysis would be needed to identify the underlying reasons for the substantial decline in the operating profit margin in the most recent quarter.