PACCAR Inc (PCAR)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	40,823,400	33,275,500	29,509,400	28,450,000	28,361,100
Total stockholders’ equity	US$ in thousands	15,878,800	13,167,100	11,594,000	10,533,300	9,706,100
Financial leverage ratio		2.57	2.53	2.55	2.70	2.92

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $40,823,400K ÷ $15,878,800K
= 2.57

Paccar Inc.'s financial leverage ratio has exhibited a fluctuating trend over the past five years, ranging from 2.57 in 2023 to 2.92 in 2019. The ratio peaked in 2019 and has since been on a decreasing trajectory, suggesting a reduction in the company's reliance on debt to finance its operations. A lower financial leverage ratio indicates a stronger equity position relative to debt, which can be favorable for financial stability and solvency. It is important for investors and stakeholders to monitor this ratio to assess the company's risk profile and financial health over time.