PACCAR Inc (PCAR)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,600,800 | 3,011,600 | 1,865,500 | 1,301,200 | 2,387,900 |
| Total assets | US$ in thousands | 40,823,400 | 33,275,500 | 29,509,400 | 28,450,000 | 28,361,100 |
| ROA | 11.27% | 9.05% | 6.32% | 4.57% | 8.42% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $4,600,800K ÷ $40,823,400K
= 11.27%
Paccar Inc.'s return on assets (ROA) has shown a positive trend over the past five years. The ROA increased from 8.42% in 2019 to 11.27% in 2023, indicating an improvement in the company's ability to generate profits from its assets.
The consistent growth in ROA reflects that Paccar has been effectively utilizing its assets to generate earnings for the company and its shareholders. This can be a positive signal for investors, as a higher ROA suggests a more efficient management of assets and increased profitability.
The upward trajectory of ROA from 2019 to 2023 indicates that Paccar has been able to enhance its operational efficiency and profitability over the years. This improvement may be attributed to various factors such as effective cost management, strategic investments, or operational efficiencies implemented by the company.
Overall, the increasing trend in Paccar Inc.'s ROA demonstrates the company's ability to generate higher returns on the assets it owns, which can be seen as a favorable indicator of the company's financial performance and efficiency.
Peer comparison
Dec 31, 2023