PACCAR Inc (PCAR)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 17.45% | 97.13% | 97.15% | 97.19% | 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% |
| Operating profit margin | 10.89% | 94.36% | 94.40% | 94.47% | 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% |
| Pretax margin | 16.04% | 16.92% | 17.64% | 17.89% | 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% |
| Net profit margin | 12.36% | 13.51% | 14.07% | 14.30% | 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% |
PACCAR Inc has shown a consistent improvement in its profitability ratios over the years. The gross profit margin, which measures the proportion of revenue remaining after accounting for the cost of goods sold, has steadily increased from 95.32% as of March 31, 2020, to 97.13% as of September 30, 2024, indicating effective cost management and pricing strategies.
The operating profit margin, a measure of operational efficiency, also exhibited positive trends, rising from 90.72% on March 31, 2020, to 94.36% on September 30, 2024. This improvement suggests that the company has been able to control its operating expenses while generating higher revenues.
The pretax margin, which reflects the percentage of each dollar of revenue that translates into pre-tax profit, showed a notable growth from 11.30% on March 31, 2020, to 16.92% on September 30, 2024. This indicates that PACCAR has been successful in enhancing its profitability before accounting for taxes.
The net profit margin, a key indicator of overall profitability, also exhibited a positive trend, increasing from 8.73% on March 31, 2020, to 13.51% on September 30, 2024. This improvement signifies that the company has been able to boost its bottom line by efficiently managing expenses and generating higher net income.
In conclusion, PACCAR Inc has demonstrated a consistent improvement in its profitability ratios over the years, reflecting effective cost control measures, efficient operations, and overall positive financial performance.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 9.59% | 10.88% | 12.05% | 12.54% | 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% |
| Return on total capital | 20.94% | 176.12% | 188.18% | 198.20% | 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% |
| Return on equity (ROE) | 23.77% | 25.22% | 28.04% | 30.00% | 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% |
PACCAR Inc's profitability ratios show a consistent trend of improvement over the years.
- Operating Return on Assets (Operating ROA): PACCAR Inc's Operating ROA increased steadily from 80.68% on March 31, 2020, to a peak of 83.90% on September 30, 2022. The ratio then fluctuated slightly but remained relatively high, indicating the company's ability to generate operating profits from its assets.
- Return on Assets (ROA): The ROA also displayed a positive trajectory, starting at 7.76% on March 31, 2020, and reaching 12.05% on June 30, 2024. This improvement reflects PACCAR Inc's efficiency in utilizing its assets to generate profits.
- Return on Total Capital: PACCAR Inc's Return on Total Capital showed a substantial increase from 228.49% on March 31, 2020, to 199.89% on June 30, 2023, before declining slightly. This ratio indicates the company's ability to generate returns for both equity and debt holders on the total capital employed.
- Return on Equity (ROE): The ROE also saw a positive trend, starting at 21.98% on March 31, 2020, and peaking at 30.00% on March 31, 2024. This demonstrates the company's ability to generate profits for shareholders from the equity invested in the business.
Overall, PACCAR Inc's profitability ratios indicate an effective utilization of assets and capital, resulting in increased returns for both operational and shareholder perspectives.