PACCAR Inc (PCAR)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 40,823,400 | 33,275,500 | 29,509,400 | 28,450,000 | 28,361,100 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $40,823,400K
= 0.00
The debt-to-assets ratio of Paccar Inc. has exhibited a downward trend over the past five years, decreasing from 0.40 in 2019 to 0.35 in 2023. This indicates that the company's level of debt in relation to its total assets has been declining. A lower debt-to-assets ratio suggests that Paccar relies less on debt financing to fund its operations and investments, which can be viewed positively by investors and creditors as it indicates lower financial risk.
However, it is important to note that while a decreasing trend in the debt-to-assets ratio can be favorable, the optimal ratio can vary depending on the industry, business model, and economic conditions. Therefore, further analysis and comparison with industry benchmarks are needed to fully assess the financial health and leverage position of Paccar Inc.
Peer comparison
Dec 31, 2023