PACCAR Inc (PCAR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 17,506,900 | 15,878,800 | 13,167,100 | 11,594,000 | 10,533,300 |
| ROE | 23.77% | 28.97% | 22.87% | 16.09% | 12.35% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $4,162,000K ÷ $17,506,900K
= 23.77%
To analyze PACCAR Inc's return on equity (ROE) over the period from December 31, 2020, to December 31, 2024:
1. The ROE increased from 12.35% in 2020 to 16.09% in 2021, indicating an improvement in the company's ability to generate profits from its shareholders' equity.
2. The trend continued with a significant rise in ROE to 22.87% in 2022, demonstrating the company's efficient utilization of equity to generate higher returns.
3. By December 31, 2023, the ROE further increased to 28.97%, reflecting a strong performance in generating earnings relative to shareholders' investments.
4. However, there was a slight decrease in ROE to 23.77% by the end of 2024. This may indicate a potential moderation in the company's profitability or a change in the capital structure affecting the equity base.
Overall, PACCAR Inc has shown a positive trend in ROE, indicating effective management of shareholder equity and profitability during the period under consideration. Continued monitoring of ROE trends will be essential to assess the company's financial health and performance in the future.
Peer comparison
Dec 31, 2024