PACCAR Inc (PCAR)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	43,418,900	43,281,800	41,176,600	40,373,600	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
Operating ROA		8.44%	75.94%	80.90%	82.83%	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%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $3,666,600K ÷ $43,418,900K
= 8.44%

PACCAR Inc's operating return on assets (ROA) has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The operating ROA started at a high of 80.68% in March 2020, indicating the company was efficiently generating profits from its assets. However, there was a gradual decline in the operating ROA, reaching a low of 58.16% by December 2020.

Subsequently, there was an upward trend in the operating ROA, with noticeable improvements by September 2021, where it reached 73.18%. The trend continued to improve, with the operating ROA peaking at 83.90% by September 2022, signifying enhanced operational efficiency and profitability.

However, there was a slight dip in the operating ROA by December 2022 to 81.60%, followed by a fluctuating pattern over the next quarters. By December 31, 2024, the operating ROA significantly dropped to 8.44%. This sudden decline could indicate potential issues affecting the company's operational performance or asset utilization efficiency.

Overall, PACCAR Inc's operating ROA displayed both positive and negative trends over the period, reflecting varying levels of efficiency in utilizing assets to generate operating profits. It would be essential for stakeholders to further analyze the company's operational strategies and financial performance to understand the factors driving these fluctuations in the operating ROA.