PACCAR Inc (PCAR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,666,600 | 32,869,400 | 33,313,500 | 33,440,900 | 32,609,700 | 31,718,300 | 30,142,400 | 28,469,200 | 27,152,800 | 25,694,000 | 23,768,100 | 22,389,100 | 21,629,300 | 20,425,100 | 20,101,300 | 17,296,600 | 16,547,100 | 17,070,900 | 18,491,700 | 22,020,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 20.94% | 176.12% | 188.18% | 198.20% | 205.37% | 197.95% | 199.89% | 205.08% | 206.22% | 199.28% | 189.87% | 184.37% | 186.56% | 177.92% | 177.41% | 159.24% | 157.09% | 167.62% | 189.14% | 228.49% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,666,600K ÷ ($—K + $17,506,900K)
= 20.94%
The return on total capital for PACCAR Inc has shown fluctuating trends over the past few years. It started at a high of 228.49% in March 2020, gradually decreasing to 157.09% by December 2020. Thereafter, there was a slight increase in the return on total capital over the next few quarters, reaching a peak of 206.22% in December 2022.
However, there was a notable drop in the return on total capital in the subsequent periods, particularly in December 2024 where it plummeted to 20.94%. This drastic decline may indicate challenges in efficiently utilizing the total capital to generate returns during that specific period.
Overall, the return on total capital for PACCAR Inc demonstrates variability and highlights the importance of consistently monitoring and managing capital allocation to sustain and improve financial performance.
Peer comparison
Dec 31, 2024