Business Analysis of PACCAR

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of PACCAR

Business Overview

PACCAR Inc, together with its subsidiaries, designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks worldwide. It operates in three segments: Truck, Parts, and Financial Services. The Truck segment offers trucks that are used for the over-the-road and off-highway hauling of commercial and consumer goods. The company sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full service leasing operations under the PacLease trade name. This segment also provides equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owner/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for acquisition of trucks and related equipment. The company also manufactures and sells industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.

PACCAR

PACCAR


R&P Rank: 161
Sector: Automobiles and Parts
Industry:Automobiles
H.Q Location:Washington
Website: www.paccar.com
Company Address:
PACCAR BUILDING, 777 106TH AVENUE NE, BELLEVUE WA 98004
Ph:425-468-7383

Business Analysis of PACCAR

The Automobiles and Parts Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how PACCAR compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by PACCAR to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of PACCAR with an interactive chart.

  1. Revenue Growth: PACCAR reported a revenue growth of -10.9% year-on-year during 2016. Automobiles Industry grew at 4.4% in the same period
  2. COGS share of Revenues: As a percentage of revenue, PACCAR spent 79.4% of its total revenues on COGS. Automobiles industry average (COGS share of revenue) in the same period was 86.6%
  3. R&D share of Revenues: As a percentage of revenue, PACCAR spent 1.5% of its total revenues on R&D. Automobiles industry average R&D spending in the same period was 0.4%
  4. SG&A share of Revenues: As a percentage of revenue, PACCAR spent 3.2% of its total revenues on Sales, Marketing, and General Administration (SG&A). Automobiles industry average SG&A spending in the same period was 8.0%
  5. Inventory share of Revenues: As a percentage of revenue, PACCAR spent 4.3% of its total revenues on Inventories. Automobiles industry average Inventory spending in the same period was 8.0%
  6. Accounts Payable share of Revenues: As a percentage of revenue, PACCAR invested 15.5% of its total revenues on Accounts Payable (A/P) Automobiles industry average Accounts Payable investment in the same period was 14.6%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, PACCAR invested 56.9% of its total revenues on Accounts Receivable (A/R). Automobiles industry average Accounts Receivable investment in the same period was 47.5%
  8. PP&E share of Revenues: As a percentage of revenue, PACCAR invested 34.6% of its total revenues on Property, Plants, and Equipments (PP&E). Automobiles industry average PPE investment in the same period was 34.0%
  9. Intangibles share of Revenues: PACCAR Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
  10. Net Margins: PACCAR Net Margins in the year 2016 were 3.1%. Automobiles industry average Net Margins in the same period were 4.1%

Sector and Industry Association of PACCAR

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

PACCAR is associated with Industrials Sector Group, Automobiles and Parts Sector, and Automobiles Industry.

Automobiles and Parts sector is comprised of the following industries: Automobiles; Auto Parts. The definitions for each of the industries is as follows:

  • Automobiles industry includes manufacturers of passenger vehicle that includes Cars, SUVs etc. and recreational vehicles including motorcycles like Harley Davidson. Companies making boats and other recreational vehicles are also part of Automobiles industry.
  • Auto Parts industry includes manufacturers and distributors of automobile parts including engines, batteries and also tires.

Industry Ranking of PACCAR

With $17 billion revenues, PACCAR ranked number 3 of all the companies in the US Automobiles industry. There were a total of 18 public companies in the US Automobiles industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Automobiles industry by revenues during 2016 were:

  1. General Motors ($166.4 billion)
  2. Ford Motor ($151.8 billion)
  3. PACCAR ($17 billion)
  4. Navistar International ($8.1 billion)
  5. Tesla Motors ($7 billion)
  6. Oshkosh ($6.3 billion)
  7. Harley-Davidson ($6 billion)
  8. Thor Industries ($4.6 billion)
  9. Polaris Industries ($4.5 billion)
  10. Brunswick ($4.5 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of PACCARand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of paccar

General Motors (GM) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

General Motors Co with $166 billion revenues in the year 2016 was the number 1 Automobiles company. Read this report to know the top competitors of General Motors and identify growth and cost optimization opportunities of General Motors

Ford Motor (F) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Ford Motor Co with $152 billion revenues in the year 2016 was the number 2 Automobiles company. Read this report to know the top competitors of Ford Motor and identify growth and cost optimization opportunities of Ford Motor

Navistar International (NAV) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Navistar International Corp with $8 billion revenues in the year 2016 was the number 4 Automobiles company. Read this report to know the top competitors of Navistar International and identify growth and cost optimization opportunities of Navistar International

Tesla Motors (TSLA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Tesla Motors Inc with $7 billion revenues in the year 2016 was the number 5 Automobiles company. Read this report to know the top competitors of Tesla Motors and identify growth and cost optimization opportunities of Tesla Motors

Oshkosh (OSK) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Oshkosh Corp with $6 billion revenues in the year 2016 was the number 6 Automobiles company. Read this report to know the top competitors of Oshkosh and identify growth and cost optimization opportunities of Oshkosh

Harley-Davidson (HOG) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Harley-Davidson Inc with $6 billion revenues in the year 2016 was the number 7 Automobiles company. Read this report to know the top competitors of Harley-Davidson and identify growth and cost optimization opportunities of Harley-Davidson

Revenues Analysis

PACCAR (PCAR) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of PACCAR Inc (PCAR) from 2012 to 2016. PACCAR generated a total of $17 billion revenues during 2016. PACCAR reported a revenue growth of -10.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

PACCAR (PCAR) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of PACCAR Inc (PCAR) from 2002 to 2016. PACCAR generated a total of $17 billion revenues during 2016. PACCAR reported a revenue growth of -10.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

PACCAR (PCAR) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of PACCAR Inc (PCAR) revenue growth with Automobiles industry growth during the last five years from 2012 to 2016. PACCAR reported a revenue growth of -10.9% year-over-year during 2016. The Automobiles industry growth was 4.4% year-over-year during 2016. PACCAR growth was slower than the industry during 2016.

Profit Analysis

PACCAR (PCAR) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of PACCAR Inc (PCAR) from 2012 to 2016. PACCAR reported a total net income of $521.7 million during 2016. PACCAR generated a total of $17 billion revenues during 2016. PACCAR net profit margin was 3.1% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.

PACCAR (PCAR) Net Profit And Net Margin From 2002 To 2016

This report provides the last fifteen years net profit and net margin of PACCAR Inc (PCAR) from 2002 to 2016. PACCAR reported a total net income of $521.7 million during 2016. PACCAR generated a total of $17 billion revenues during 2016. PACCAR net profit margin was 3.1% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.