Paccar

Key Performance Metrics

  • The review of Net Profit Margin witnessed a mixed trend. Net Profit Margin declined from 9.21% in 2017 to 8.48% in 2021.
  • The average EBIT Margin for the period under analysis was 1.47%, with 2019 and 2021 performing the worst and best, respectively.
  • In the current year, Paccar was able to cover its interest liabilities 2.90 times in the current year- compared to 2017 when it was 1.75 times.
  • The Asset turnover stood at 0.76 times in 2021 from 0.83 in 2017, implying a low performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of Paccar has flunctuated year on year. The revenue increased by 21.8% between 2017 and 2018 and a further 8.9% increase was recorded between 2018 and 2019. There also occurred a/an increase of 27.3% between 2020 and 2021 (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.

Liquidity

  • The company’s result in liquidity looks strong, as current ratio/acid test increased from 1.39:1/1.17:1 to 1.43:1/1.15:1 on the last year. Which implies that the company has 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 high as it stood at 156% in the current year.

Source: Paccar Annual Report

Share This Showroom

Open chat
1
Need Help?
Powered by BFI Insights
Hello 👋
How can we assist you today?