PACCAR Inc (PCAR)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 4,162,000 4,600,800 3,011,600 1,865,500 1,301,200
Total assets US$ in thousands 43,418,900 40,823,400 33,275,500 29,509,400 28,450,000
ROA 9.59% 11.27% 9.05% 6.32% 4.57%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $4,162,000K ÷ $43,418,900K
= 9.59%

To analyze PACCAR Inc's return on assets (ROA) over the past five years, we observe a positive trend from 4.57% in December 2020 to 9.59% in December 2024. This indicates an improvement in the company's ability to generate profits relative to its total assets. Notably, there was significant growth in ROA from 2020 to 2023, reaching a peak of 11.27% in December 2023. However, there was a slight decrease to 9.59% in December 2024. Overall, the increasing trend in ROA reflects PACCAR's efficient utilization of its assets to generate profits, showcasing improved operational efficiency and potentially effective management of resources.