Key Performance Metrics

  • The review of Net Profit Margin witnessed a mixed trend. The Net Profit Margin improved from 9.9% in 2019 to 13.81% in 2023.
  • The average EBIT Margin for the period under analysis was 1.69% with 2019 and 2022 performing the worst and best,
  • In the current year, Paccar Interest Cover was 1.08 times – compared to 2019 when it was 1.3 times
  • The Asset Turnover stood at 0.9 times in 2023 from 0.9 in 2019, implying a poor performance or Assets of the business in relation to revenue.


  • The revenue of Paccar has shown a mixed trend year on year. The revenue decreased by 28.88 between 2019 and 2020 and a further 27.28% increase was recorded between 2020 and 2021. There also occurred an increase of 21.97% between 2022 and 2023 (the current period). 
  • Paccar’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.


  • The company’s result in liquidity looks good, as current ratio/acid test increase from 1.33:1/1.14:1 to 1.57:1/1.28:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.

Capital Structure

  • Paccar is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be low as it stood at 1.57 in the current year.

Source: Paccar Annual Report

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