PACCAR Inc (PCAR)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 17,506,900 | 15,878,800 | 13,167,100 | 11,594,000 | 10,533,300 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $17,506,900K
= 0.00
Based on the provided data for the debt-to-equity ratio of PACCAR Inc for the years 2020 to 2024, it shows that the company consistently maintained a debt-to-equity ratio of 0.00. This indicates that PACCAR had no debt relative to its equity during this period. A debt-to-equity ratio of 0.00 signifies that the company did not rely on debt financing to fund its operations or investments and instead relied solely on equity funding. While a lower debt-to-equity ratio typically indicates lower financial risk, it could also suggest missed opportunities for leveraging debt financing to potentially enhance returns, especially during periods of low interest rates. PACCAR's consistent 0.00 debt-to-equity ratio reflects a conservative financial strategy focused on minimizing debt exposure and maintaining a strong equity base.
Peer comparison
Dec 31, 2024