Aureus
BGood

PACCAR Inc.(PCAR)

B

Financial data as of Dec 31, 2024Improving · Industrials

FCF Margin8.6%Free Cash Flow / Revenue
Cash Conversion111.5%Operating CF / Net Income
Free Cash Flow$2.9B
Revenue$33.7B
Net Cash-$8.8BNet debt position
Debt / FCF5.5xElevated debt burden
Current Ratio2.64Adequate short-term liquidity
YoY FCF Growth+34.6%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-0.5Elevated debt-to-FCF ratio (5.5x)
→
+1Strong YoY FCF growth (34.6% YoY)
→
FinalB

Analysis Summary

Strengths

  • Excellent cash conversion (112%)
  • Strong liquidity (current ratio: 2.64)
  • Strong YoY FCF growth (+34.6%)
  • FCF trend is improving

Concerns

  • Low FCF margin (8.6%)
  • Heavy debt position ($8.8B)
  • High debt-to-FCF ratio (5.5x)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin8.6%
Net Margin12.4%
Operating CF Margin13.8%
CapEx Ratio5.2%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$8.8BNet debt position
Debt / FCF5.5xElevated debt burden
Current Ratio2.64Strong liquidity
Debt / Equity0.91Low leverage

Quarterly FCF Trend

+34.6% YoYImproving (+34.6%)

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$2.9B
Revenue$33.7B
Net Income$4.2B
Operating Cash Flow$4.6B
Capital Expenditure$1.7B
FCF Margin8.6%
Cash Conversion Rate111.5%
Net Margin12.4%
Total Debt$15.9B
Total Cash$7.1B
Net Cash-$8.8B
Current Ratio2.64
Debt / Equity0.91
Debt / FCF5.5x
YoY FCF Growth+34.6%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2024
GradeB
Data SourceYahoo Finance