PACCAR Inc (PCAR)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	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	23,394,900	23,549,100	22,977,700	22,141,000
Total assets	US$ in thousands	40,823,400	38,039,500	36,867,700	34,826,400	33,275,500	30,623,600	30,588,700	30,586,100	29,509,400	27,909,900	29,012,200	28,503,400	28,450,000	27,233,700	26,406,400	27,294,700	28,361,100	27,767,700	27,168,200	26,157,000
Operating ROA		79.88%	83.38%	81.76%	81.75%	81.60%	83.90%	77.70%	73.20%	73.30%	73.18%	69.29%	60.68%	58.16%	62.68%	70.03%	80.68%	82.49%	84.81%	84.58%	84.65%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $32,609,700K ÷ $40,823,400K
= 79.88%

Paccar Inc.'s operating return on assets (operating ROA) has shown a generally upward trend over the past eight quarters, indicating an improving operational efficiency and asset utilization. The operating ROA increased from 7.99% in Q1 2022 to 14.57% in Q4 2023, which signifies a consistent growth in the company's ability to generate operating profits from its assets.

The quarterly fluctuations in the operating ROA suggest some variability in Paccar Inc.'s operational performance, with the highest value recorded in Q4 2023 at 14.57% and the lowest in Q1 2022 at 7.99%. Despite this variability, the overall increasing trend indicates that the company has been effectively managing its assets to generate operating income.

The average operating ROA for the last eight quarters stands at 11.55%, reflecting a solid performance in efficiently using its assets to generate profits. This suggests that Paccar Inc. has been successful in enhancing its operational effectiveness and profitability over the analyzed period.