PACCAR Inc (PCAR)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 43,418,900 | 40,823,400 | 33,275,500 | 29,509,400 | 28,450,000 |
| Operating ROA | 8.37% | 81.32% | 81.59% | 73.30% | 58.12% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $3,632,500K ÷ $43,418,900K
= 8.37%
PACCAR Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the past five years. The ratio increased steadily from 58.12% as of December 31, 2020, to 81.59% as of December 31, 2022, indicating improving efficiency in generating operating income relative to its assets. However, there was a slight decline to 81.32% by the end of 2023.
Unexpectedly, there was a substantial drop to 8.37% by December 31, 2024. This drastic decrease raises concerns about the company's ability to generate operating income in relation to its assets efficiently. Further analysis is required to understand the factors contributing to this significant decline and its potential impact on the company's overall performance.
Peer comparison
Dec 31, 2024