PACCAR Inc (PCAR)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 97.24% | 97.27% | 97.23% | 97.15% | 97.10% | 96.93% | 96.67% | 96.36% | 95.97% | 95.57% | 95.27% | 94.54% | 94.13% | 94.22% | 94.60% | 95.32% | 95.68% | 95.70% | 95.67% | 95.49% |
| Operating profit margin | 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% | 91.39% | 91.41% | 91.36% | 91.01% |
| Pretax margin | 16.28% | 15.37% | 14.27% | 12.97% | 13.35% | 12.18% | 11.16% | 10.60% | 10.19% | 10.08% | 10.19% | 9.30% | 8.86% | 9.46% | 10.20% | 11.30% | 12.11% | 12.28% | 12.15% | 12.17% |
| Net profit margin | 13.10% | 12.01% | 11.20% | 10.20% | 10.45% | 9.53% | 8.72% | 8.26% | 7.93% | 7.82% | 7.92% | 7.26% | 6.93% | 7.39% | 7.95% | 8.73% | 9.33% | 9.45% | 9.43% | 9.50% |
Paccar Inc.'s profitability ratios have shown a positive trend over the quarters analyzed. The gross profit margin has been consistently improving, indicating efficient cost management and effective pricing strategies. This also reflects an increase in the percentage of revenue retained after accounting for the cost of goods sold.
The operating profit margin, which measures operational efficiency, has also demonstrated a steady increase, suggesting improved profitability from core business activities. It shows the percentage of revenue remaining after deducting operating expenses.
The pretax margin, representing the company's ability to generate earnings before taxes, has shown a positive trajectory, indicating effective management in controlling costs and optimizing revenue streams.
The net profit margin, which reveals the percentage of revenue retained as profit after all expenses have been deducted, has also been on the rise. This demonstrates Paccar Inc.'s ability to generate income from its operations and reflects a healthy bottom line.
Overall, Paccar Inc.'s profitability ratios reflect a consistent improvement in operational efficiency and financial performance over the analyzed quarters, showcasing the company's ability to generate profits while effectively managing costs.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 11.27% | 10.79% | 9.89% | 9.03% | 9.05% | 8.52% | 7.26% | 6.52% | 6.32% | 6.28% | 6.06% | 4.95% | 4.56% | 5.23% | 6.23% | 7.76% | 8.42% | 8.77% | 8.73% | 8.84% |
| Return on total capital | 205.37% | 197.95% | 199.89% | 205.08% | 206.22% | 199.28% | 189.87% | 184.37% | 186.56% | 177.92% | 177.41% | 159.24% | 157.09% | 167.62% | 189.14% | 228.49% | 241.03% | 236.37% | 238.47% | 243.16% |
| Return on equity (ROE) | 28.97% | 25.62% | 24.18% | 22.66% | 22.87% | 20.24% | 17.74% | 16.43% | 16.09% | 15.27% | 15.51% | 12.98% | 12.33% | 13.98% | 16.84% | 21.98% | 24.60% | 24.44% | 24.62% | 25.39% |
Paccar Inc.'s profitability ratios show a consistent improvement over the quarters. The Operating return on assets (Operating ROA) has steadily increased from 11.05% in Q4 2022 to 14.57% in Q4 2023, indicating the company's ability to generate earnings from its assets through operations.
Return on assets (ROA) has also shown a positive trend from 9.05% in Q4 2022 to 11.27% in Q4 2023, reflecting the company's efficient use of assets to generate profits. Additionally, Return on total capital has been consistently increasing, reaching 19.75% in Q4 2023, indicating that the company is generating healthy returns on its total invested capital.
Return on equity (ROE) has also depicted an upward trajectory, with a significant improvement from 16.33% in Q1 2022 to 28.97% in Q4 2023. This signifies that the company is delivering strong returns to its equity shareholders.
Overall, Paccar Inc.'s profitability ratios demonstrate a positive performance, showcasing effective management of assets, capital, and equity to generate increasing returns for its investors.