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PCAR (PACCAR) Beneish M-Score : -2.40 (As of Mar. 20, 2025)


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What is PACCAR Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.4 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for PACCAR's Beneish M-Score or its related term are showing as below:

PCAR' s Beneish M-Score Range Over the Past 10 Years
Min: -2.68   Med: -2.45   Max: -2.28
Current: -2.4

During the past 13 years, the highest Beneish M-Score of PACCAR was -2.28. The lowest was -2.68. And the median was -2.45.


PACCAR Beneish M-Score Historical Data

The historical data trend for PACCAR's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

PACCAR Beneish M-Score Chart

PACCAR Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.66 -2.43 -2.28 -2.30 -2.40

PACCAR Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.30 -2.36 -2.33 -2.32 -2.40

Competitive Comparison of PACCAR's Beneish M-Score

For the Farm & Heavy Construction Machinery subindustry, PACCAR's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


PACCAR's Beneish M-Score Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, PACCAR's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PACCAR's Beneish M-Score falls into.



PACCAR Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of PACCAR for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.1215+0.528 * 1.0899+0.404 * 1.1338+0.892 * 0.9583+0.115 * 0.9869
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0306+4.679 * -0.02012-0.327 * 1.0002
=-2.40

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec24) TTM:Last Year (Dec23) TTM:
Total Receivables was $21,248 Mil.
Revenue was 7907.5 + 8239.9 + 8772.1 + 8744.3 = $33,664 Mil.
Gross Profit was 1470.7 + 1579.7 + 1789.1 + 1870.1 = $6,710 Mil.
Total Current Assets was $34,206 Mil.
Total Assets was $43,419 Mil.
Property, Plant and Equipment(Net PPE) was $5,946 Mil.
Depreciation, Depletion and Amortization(DDA) was $917 Mil.
Selling, General, & Admin. Expense(SGA) was $744 Mil.
Total Current Liabilities was $12,970 Mil.
Long-Term Debt & Capital Lease Obligation was $10,410 Mil.
Net Income was 872 + 972.1 + 1122.6 + 1195.3 = $4,162 Mil.
Non Operating Income was 104.7 + 108.7 + 95.8 + 85.5 = $395 Mil.
Cash Flow from Operations was 1445.7 + 1286.2 + 440 + 1469 = $4,641 Mil.
Total Receivables was $19,770 Mil.
Revenue was 9076.6 + 8696.4 + 8881.1 + 8473.3 = $35,127 Mil.
Gross Profit was 1963 + 1906.5 + 1893.5 + 1867.5 = $7,631 Mil.
Total Current Assets was $32,031 Mil.
Total Assets was $40,823 Mil.
Property, Plant and Equipment(Net PPE) was $6,083 Mil.
Depreciation, Depletion and Amortization(DDA) was $924 Mil.
Selling, General, & Admin. Expense(SGA) was $753 Mil.
Total Current Liabilities was $12,813 Mil.
Long-Term Debt & Capital Lease Obligation was $9,166 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(21248.1 / 33663.8) / (19769.8 / 35127.4)
=0.631185 / 0.562803
=1.1215

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(7630.5 / 35127.4) / (6709.6 / 33663.8)
=0.217224 / 0.199312
=1.0899

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (34206 + 5946.2) / 43418.9) / (1 - (32031.4 + 6083.1) / 40823.4)
=0.075237 / 0.066357
=1.1338

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=33663.8 / 35127.4
=0.9583

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(923.9 / (923.9 + 6083.1)) / (916.9 / (916.9 + 5946.2))
=0.131854 / 0.133599
=0.9869

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(744 / 33663.8) / (753.3 / 35127.4)
=0.022101 / 0.021445
=1.0306

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((10410.1 + 12970.2) / 43418.9) / ((9165.6 + 12812.5) / 40823.4)
=0.538482 / 0.53837
=1.0002

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(4162 - 394.7 - 4640.9) / 43418.9
=-0.02012

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

PACCAR has a M-score of -2.40 suggests that the company is unlikely to be a manipulator.


PACCAR Business Description

Address
777-106th Avenue North East, Bellevue, WA, USA, 98004
Paccar is a leading manufacturer of medium- and heavy-duty trucks under the premium brands Kenworth and Peterbilt (primarily sold in the NAFTA region and Australia), and DAF trucks (sold in Europe and South America). The company's trucks are sold through more than 2,300 independent dealers globally. Paccar Financial Services provides retail and wholesale financing for customers and dealers, respectively. The company commands roughly 30% of the Class 8 market share in North America and 17% of the heavy-duty market share in Europe.
Executives
Michael K Walton officer: VICE PRESIDENT/GENERAL COUNSEL 777 106TH AVENUE NE, BELLEVUE WA 98004
Harrie Schippers officer: Vice President 777 106TH AVENUE NE, BELLEVUE WA 98004
Todd R Hubbard officer: VICE PRESIDENT 777 106TH AVE NE, BELLEVUE WA 98004
R Preston Feight officer: VICE PRESIDENT 777 106TH AVE NE, BELLEVUE WA 98004
Darrin C Siver officer: VICE PRESIDENT 777 106TH AVE NE, BELLEVUE WA 98004
Kevin D Baney officer: VICE PRESIDENT 777 106TH AVE NE, BELLEVUE WA 98004
Brice J Poplawski officer: Vice President & Controller 777 106TH AVE. NE, BELLEVUE WA 98004
Mark C Pigott director, officer: CHAIRMAN & CEO
Michael T Barkley officer: VICE PRESIDENT/CONTROLLER 777 106TH AVENUE NE, BELLEVUE WA 98004
Cynthia Niekamp director PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Barbara B. Hulit director C/O FORTIVE CORPORATION, 6920 SEAWAY BLVD, EVERETT WA 98203
C Michael Dozier officer: VICE PRESIDENT 777 106TH AVE NE, BELLEVUE WA 98004
Paulo Henrique Bolgar officer: Vice President 777 106TH AVENUE NE, BELLEVUE WA 98004
Jack K. Levier officer: Vice President 777 106TH AVENUE NE, BELLEVUE WA 98004
Alison J Carnwath director 777 106TH AVENUE NE, BELLEVUE WA 98004