Aureus
AExcellent

PACCAR Inc.(PCAR)

A

Financial data as of Dec 31, 2025Improving · Industrials

FCF Margin10.6%Free Cash Flow / Revenue
Cash Conversion185.9%Operating CF / Net Income
Free Cash Flow$3.0B
Revenue$28.4B
Net Cash-$9.3BNet debt position
Debt / FCF5.2xElevated debt burden
Current Ratio3.08Adequate short-term liquidity
YoY FCF Growth+11.9%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseB
→
+0.5Modest YoY FCF growth (11.9% YoY)
→
FinalA

Analysis Summary

Strengths

  • Healthy FCF margin (10.6%)
  • Excellent cash conversion (186%)
  • Strong liquidity (current ratio: 3.08)
  • FCF trend is improving

Concerns

  • Heavy debt position ($9.3B net debt, 5.2x FCF)
  • High debt-to-FCF ratio (5.2x)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin10.6%
Net Margin8.4%
Operating CF Margin15.5%
CapEx Ratio4.9%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$9.3BNet debt position
Debt / FCF5.2xElevated debt burden
Current Ratio3.08Strong liquidity
Debt / Equity0.81Low leverage

Quarterly FCF Trend

+11.9% YoYImproving (+11.9%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NamePACCAR Inc.
SectorIndustrials
Free Cash Flow$3.0B
Revenue$28.4B
Net Income$2.4B
Operating Cash Flow$4.4B
Capital Expenditure$1.4B
FCF Margin10.6%
Cash Conversion Rate185.9%
Net Margin8.4%
Total Debt$15.6B
Total Cash$6.3B
Net Cash-$9.3B
Current Ratio3.08
Debt / Equity0.81
Debt / FCF5.2x
YoY FCF Growth+11.9%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance