PACCAR Inc (PCAR)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Total assets	US$ in thousands	43,418,900	43,281,800	41,176,600	40,373,600	40,823,400	38,039,500	36,867,700	34,826,400	33,275,500	30,623,600	30,588,700	30,586,100	29,509,400	27,909,900	29,012,200	28,503,400	28,450,000	27,233,700	26,406,400	27,294,700
Total stockholders’ equity	US$ in thousands	17,506,900	18,663,600	17,702,900	16,871,900	15,878,800	16,023,100	15,079,300	13,882,000	13,167,100	12,893,500	12,518,000	12,143,300	11,594,000	11,479,800	11,330,300	10,861,700	10,533,300	10,184,400	9,776,800	9,637,400
Financial leverage ratio		2.48	2.32	2.33	2.39	2.57	2.37	2.44	2.51	2.53	2.38	2.44	2.52	2.55	2.43	2.56	2.62	2.70	2.67	2.70	2.83

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $43,418,900K ÷ $17,506,900K
= 2.48

The financial leverage ratio of PACCAR Inc has shown a decreasing trend over the analyzed period, starting at 2.83 on March 31, 2020, and reaching 2.48 on December 31, 2024. This indicates that the company's reliance on debt to finance its operations and investments has been gradually decreasing. A lower financial leverage ratio generally suggests lower financial risk and greater stability, as the company is relying less on borrowed funds. PACCAR's decreasing leverage ratio could indicate either a decrease in debt levels or an increase in equity, signaling a stronger financial position. It is important to monitor this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial health and risk profile.