PACCAR Inc (PCAR)

Debt-to-assets ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands
Total assets US$ in thousands 43,418,900 40,823,400 33,275,500 29,509,400 28,450,000
Debt-to-assets ratio 0.00 0.00 0.00 0.00 0.00

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $43,418,900K
= 0.00

Based on the data provided for PACCAR Inc, the debt-to-assets ratio has consistently remained at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not utilized debt financing to fund its assets during this period. A debt-to-assets ratio of 0.00 signifies that PACCAR's assets are entirely funded by equity, implying a strong financial position with no financial leverage. While a zero debt-to-assets ratio may suggest a conservative approach to financing, it may also indicate missed opportunities for leveraging debt to potentially enhance returns for shareholders. Additionally, the stability of the debt-to-assets ratio over these years reflects the company's consistent financial strategy of relying on equity for its operations and investments.