PACCAR Inc (PCAR)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	40,823,400	33,275,500	29,509,400	28,450,000	28,361,100
Operating ROA		81.32%	81.59%	73.30%	58.12%	82.46%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $33,198,700K ÷ $40,823,400K
= 81.32%

Paccar Inc.'s operating return on assets (operating ROA) has shown a positive trend over the five-year period from 2019 to 2023. In 2019, the operating ROA was 10.49%, which then decreased to 5.55% in 2020. However, starting from 2020, there has been a consistent improvement in the operating ROA, reaching 7.82% in 2021, 11.05% in 2022, and further increasing to 14.57% in 2023.

This upward trend in operating ROA indicates that Paccar Inc. has been effectively utilizing its assets to generate operating income. The significant improvement in operating ROA from 2020 to 2023 suggests that the company may have implemented operational efficiencies or strategic initiatives to enhance profitability relative to its asset base.

Overall, the increasing trend in Paccar Inc.'s operating ROA reflects positive performance in terms of asset utilization and operational effectiveness, which may be perceived favorably by investors and stakeholders as a measure of the company's financial health and profitability.