The business behind the dividend
| Measure | PCAR | Median | Formula |
|---|---|---|---|
| Return on equity | 12.3% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | — | — | Operating income ÷ (equity + total debt) |
| Owner earnings | $2.03bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $3.67bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 10.6% | 15.0% | Operating income ÷ revenue |
| Net margin | 8.4% | 10.2% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | — | — | Operating income ÷ interest expense |
| Current ratio | — | — | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.86x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Current ratio, Debt to equity, Interest cover, Return on capital employed — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 12.3% | 23.8% | 29.0% | 22.9% | 16.1% | 12.4% | 24.6% | 25.5% | 20.8% | 7.7% | 20.8% |
| Operating margin | 10.6% | 16.0% | 16.3% | 13.4% | 10.2% | 8.9% | 12.1% | 12.0% | 11.2% | 6.6% | 11.2% |
| Net margin | 8.4% | 12.4% | 13.1% | 10.4% | 7.9% | 6.9% | 9.3% | 9.3% | 8.6% | 3.1% | 8.6% |
| Cash conversion | 1.86x | 1.12x | 0.91x | 1.01x | 1.17x | 2.30x | 1.20x | 1.36x | 1.62x | 4.41x | 1.20x |
How it compares in industrials
Among the 74 industrials companies here measured on free cash flow, Paccar pays out less than 6 of them. The median for that group is 28.1%, against this company’s 61.7%.
Closest on free cash flow
- CSX (CSX) 56.8%
- Union Pacific (UNP) 58.8%
- Illinois Tool Works (ITW) 65.9%
- Royal Caribbean Cruises (RCL) 66.7%
Same sector and same denominator, so the figures are comparable. All 81 in industrials →