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PACCAR (BUE:PCAR) 3-Year ROIIC % : 63.40% (As of Dec. 2023)


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What is PACCAR 3-Year ROIIC %?

3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year. PACCAR's 3-Year ROIIC % for the quarter that ended in Dec. 2023 was 63.40%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for PACCAR's 3-Year ROIIC % or its related term are showing as below:

BUE:PCAR's 3-Year ROIIC % is ranked better than
88.57% of 210 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 8.135 vs BUE:PCAR: 63.40

PACCAR 3-Year ROIIC % Historical Data

The historical data trend for PACCAR's 3-Year ROIIC % 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 3-Year ROIIC % Chart

PACCAR Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
3-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.28 -11.19 -9.16 22.13 63.40

PACCAR Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
3-Year ROIIC % 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 - 63.40 - - -

Competitive Comparison of PACCAR's 3-Year ROIIC %

For the Farm & Heavy Construction Machinery subindustry, PACCAR's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, PACCAR's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where PACCAR's 3-Year ROIIC % falls into.



PACCAR 3-Year ROIIC % Calculation

PACCAR's 3-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( 1727194.9134492 (Dec. 2023) - 100155.9864293 (Dec. 2020) )/( 9357517.108 (Dec. 2023) - 1653275.331 (Dec. 2020) )
=1627038.9270199/7704241.777
=21.12%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


PACCAR  (BUE:PCAR) 3-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


PACCAR 3-Year ROIIC % Related Terms

Thank you for viewing the detailed overview of PACCAR's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


PACCAR Business Description

Address
777-106th Avenue N.E., 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.