PACCAR Inc (PCAR)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 15,878,800 | 13,167,100 | 11,594,000 | 10,533,300 | 9,706,100 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $15,878,800K)
= 0.00
The debt-to-capital ratio of Paccar Inc. has shown a declining trend over the past five years, decreasing from 0.54 in 2019 to 0.47 in 2023. This indicates that the company has been reducing its reliance on debt financing in relation to its total capital structure over the years. A lower debt-to-capital ratio suggests that Paccar has a healthier balance sheet, as it indicates a lower level of financial leverage and potential financial risk. This trend may reflect Paccar's efforts to optimize its capital structure and mitigate potential risks associated with high levels of debt. However, it is important to note that a moderate level of debt can also be beneficial for a company in terms of optimizing its cost of capital and supporting growth initiatives. Overall, the declining debt-to-capital ratio of Paccar indicates a positive trend towards a more balanced and sustainable capital structure.
Peer comparison
Dec 31, 2023