PACCAR Inc. — Earnings Quality Grade D
PCAR · Industrials
Significant concerns
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 49 days (230 → 279)
AR outpaced revenue for 2 consecutive years
Revenue -15.5%, CFFO -4.9%. Cash follows revenue
Expense Quality
Inventory -7.6% vs COGS -12.0%. Normal
CapEx growth -20.6% vs revenue -15.5%. Normal
SG&A/Gross Profit = 15.5%, excellent (<30%)
Gross margin 16.7%, change -3.3pp. Stable
Cash Flow Quality
CFFO/NI = 1.86. Profits backed by cash
FCF $3.0B, FCF/NI = 1.28
Accruals ratio = -4.6%. Low accruals
Cash $9.5B covers 61% of debt $15.6B
Balance Sheet Health
No goodwill. Clean balance sheet
Debt/EBITDA = 4.1x (>4x). Financial stress
Other assets 9.1% vs revenue -15.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
No goodwill
Manipulation Score
M-Score = -2.49 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08