PACCAR Inc (PCAR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	15,878,800	13,167,100	11,594,000	10,533,300	9,706,100
ROE		28.97%	22.87%	16.09%	12.35%	24.60%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $4,600,800K ÷ $15,878,800K
= 28.97%

Paccar Inc.'s return on equity (ROE) has shown a positive trend over the past five years. The ROE increased from 24.60% in 2019 to 28.97% in 2023. This indicates that the company has been effectively utilizing its equity to generate profits for its shareholders.

The ROE of 28.97% in 2023 is the highest among the years presented, suggesting improved efficiency in generating profits from shareholder equity. This could be attributed to effective cost management, revenue growth, or improved operational efficiency during the year.

The steady increase in ROE from 2019 to 2023 reflects positively on Paccar Inc.'s financial performance and management's ability to generate returns for its shareholders. It indicates that the company has been successful in maximizing shareholder value over the years, which is a key aspect of financial health and sustainability for any business.