PACCAR Inc (PCAR)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	4,162,000	4,707,300	4,963,700	5,062,200	4,600,800	4,104,800	3,645,700	3,145,000	3,011,600	2,609,000	2,220,100	1,995,200	1,865,500	1,752,600	1,757,600	1,409,800	1,298,400	1,423,900	1,646,300	2,118,300
Total stockholders’ equity	US$ in thousands	17,506,900	18,663,600	17,702,900	16,871,900	15,878,800	16,023,100	15,079,300	13,882,000	13,167,100	12,893,500	12,518,000	12,143,300	11,594,000	11,479,800	11,330,300	10,861,700	10,533,300	10,184,400	9,776,800	9,637,400
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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $4,162,000K ÷ $17,506,900K
= 23.77%

PACCAR Inc's return on equity (ROE) has shown a fluctuating trend over the past few years. The company's ROE decreased from 21.98% in March 2020 to 12.33% in December 2020, indicating a decline in profitability and efficiency in generating returns for shareholders. However, the ROE gradually improved from March 2021 to December 2024, reaching a peak of 30.00% in March 2024 before slightly decreasing to 23.77% by December 2024.

Overall, the trend suggests that PACCAR Inc has been successful in enhancing its profitability and efficiency in utilizing shareholder equity to generate returns during the latter part of the period under consideration. The increasing trend in ROE signifies that the company has been able to effectively leverage its equity to create value for its shareholders. It is essential for investors and stakeholders to monitor ROE along with other financial metrics to assess the company's performance and financial health.