PCARNEUTRAL

Return on Equity (ROE)

13.1%

Updated 368h ago

Sector Performance

47th percentile

PCAR

13.1%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' money — a 13.1% ROE means PCAR earns $0.131 for every dollar of equity.

This is slightly below the sector median of 14.4%, placing PCAR in the 46th percentile among its peers. No year-over-year or quarter-over-quarter changes are available for this metric, and the only historical value provided is the current 13.1%, so a trend direction cannot be assessed. The combination of a ROE just under the sector median with no trend data offers limited insight, implying average performance without clear momentum for higher or lower risk. This neutral level of profitability is consistent with the overall NEUTRAL verdict, as it neither signals strong competitive advantage nor weakness relative to peers.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about PCAR?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are PCAR's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.