Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

5d6d3bcad7d291bdcb28bc2ed7ec312d1c8952192f50979839ffa6a0704848b8

9cbcd97dffef1ceb75c0e630e56191092905150ba950bad12ff9e0def5072e2d

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80ef6ec2bbf412125dd93a1db0cba24abf076733db38a7a2c48692cc06de6b60

Trade and other receivables, net (USD, millions)

Inventories, net (USD, millions)

Property, plant and equipment, net (USD, millions)

Total Financial Services Assets (USD, millions)

Total Financial Services Liabilities (USD, millions)

Total Stockholders' Equity (USD, millions)

0475230033f283bb6ba11522794fa1a83341ddef4e1921c32e3ff83294476ff2

Net Income (USD, millions)

Depreciation and amortization - Property, plant and equipment (USD, millions)

Depreciation and amortization - Equipment on operating leases and other (USD, millions)

Change in operating assets and liabilities - Wholesale receivables on new trucks (USD, millions)

Net Cash Provided by Operating Activities (USD, millions)

Payments for property, plant and equipment (USD, millions)

Acquisitions of equipment for operating leases (USD, millions)

Net Cash Used in Investing Activities (USD, millions)

Payments of cash dividends (USD, millions)

Purchases of treasury stock (USD, millions)

Proceeds from stock compensation transactions (USD, millions)

Net Cash (Used in) Provided by Financing Activities (USD, millions)

Effect of exchange rate changes on cash and cash equivalents (USD, millions)

Net (Decrease) Increase in Cash and Cash Equivalents (USD, millions)

Cash and cash equivalents at beginning of period (USD, millions)

Cash and cash equivalents at end of period (USD, millions)

ccf6bc41cd22f1ac3408fa9f526b30d8c821c2d61a6c04fe120117b4bcf7d15d

The available documents show that the **Net Cash Provided by Operating Activities** was **$440.0 million** in Q2 2024.  **[0000950170-24-088553_pcar-20240630.htm:4]**  However, while another document explains the reasons behind the **year-over-year change** in Q2 2024—highlighting factors such as a **$285.0 million increase in cash usage from operating assets and liabilities adjustments** as well as changes in net income and non-cash items  **[0000950170-24-088553_pcar-20240630.htm:50]** —there isn’t any definitive explanation provided for why Q2’s operating cash flow was so much lower compared to other quarters (e.g., Q1 2024’s **$1,469.0 million**). In summary, although detailed factors affecting the year-over-year change are given, the documents do not supply a clear explanation for why the Q2 number was relatively low.

Why was Operating Cash Flow so low in Q2 2024?

The spike in the provision for losses on financial services receivables in Q4 2023 was mainly due to **portfolio growth**, **higher charge-offs**, and **increased past due balances** in the company's financial services portfolio, which collectively led to a significantly larger base of receivables potentially subject to losses.  **[0000950170-24-017900_pcar-20231231.htm:40]** **[0000950170-24-006258_pcar-ex99_1.htm:4]** 

Why did the provision for losses on financial services receivables spike in Q4 2023?

The dramatic shift in financing activities in Q1 2024 was primarily driven by **higher cash dividends paid** and a **reversal in net borrowing activity**. The company paid **$1.82 billion** in dividends in Q1 2024 compared to **$1.11 billion** in Q1 2023, intensifying cash outflows. Additionally, while Q1 2023 saw net cash inflows of **$397.0 million** from borrowing, Q1 2024 experienced net outflows of **$94.9 million**, further contributing to the shift.  **[0000950170-24-052081_pcar-20240331.htm:43]** **[0000950170-24-052081_pcar-20240331.htm:4]** 

What drove financing activities to switch from a positive to a highly negative value in Q1 2024?

What factors led to the sharp drop in estimated Free Cash Flow in Q2 2024?

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The surge in **Cash and cash equivalents** in Q4 2023 was driven by several key factors. **Strong operating cash flow**, which generated **$4,190.0 million** in net cash from operating activities during 2023, significantly improved the cash balance.  **[0000950170-24-017900_pcar-20231231.htm:55]** **[0000950170-24-006258_pcar-ex99_1.htm:5]**  This was augmented by a record **net income** of **$4,600.8 million** in 2023 compared to lower earnings previously.  **[0000950170-24-006258_pcar-ex99_1.htm:0]** **[0000950170-24-017900_pcar-20231231.htm:53]**  Additionally, while the company paid **$1,518.6 million in dividends**, it bolstered its liquidity by raising **$2,572.8 million in net debt and other financing activities**.  **[0000950170-24-006258_pcar-ex99_1.htm:5]**  The impact was further supported by **lower capital expenditures** of **$695.0 million** and a **positive exchange rate effect** of **$69.5 million** during the period.  **[0000950170-24-006258_pcar-ex99_1.htm:5]** 

What drove the surge in Cash and cash equivalents in Q4 2023?

The jump in **Total Truck, Parts and Other Assets** in Q3 2024 was driven primarily by a combination of factors. Specifically, **marketable securities** increased significantly, which, along with cash and equivalents (resulting in a net combined increase of **$493.5 million**), boosted the overall figure. Additionally, there were increases in **inventories** (**$68.1 million**), **property, plant, and equipment** (**$260.8 million**), and **other noncurrent assets** (**$177.8 million**). These gains were partially offset by a **$44.7 million** decline in **equipment on operating leases**.  **[0000950170-24-118960_pcar-20240930.htm:3]** 

What contributed to the jump in Total Truck, Parts and Other Assets in Q3 2024?

The significant increase in **Term notes** in Q3 2024 is attributed to the cumulative basis adjustments reflected in the carrying amount of the notes. Specifically, the carrying amount increased from **$128.1 million** as of Q4 2023 to **$497.3 million** in Q3 2024, while the cumulative basis adjustments shifted from **$7.1 million** to **–$11.6 million**. However, the documents do not provide further details on the underlying factors behind these changes.  **[0000950170-24-118960_pcar-20240930.htm:27]** 

Why did Term notes increase significantly in Q3 2024?

According to the documents, the **Commercial paper and bank loans** decreased from **$5,609.9 million as of December 31, 2023**, to **$4,914.8 million as of March 31, 2024**—a reduction of **$695.1 million**.  **[0000950170-24-052081_pcar-20240331.htm:3]**  Although the reasons for this change are not explicitly stated, the documents indicate that PACCAR's Financial Services segment is primarily funded through collections on existing finance receivables and borrowings in the capital markets, including commercial paper and medium-term notes. This suggests that the drop could be related to **changes in funding requirements, portfolio adjustments, or shifts in the mix of funding sources**.  **[0000950170-24-052081_pcar-20240331.htm:3]** **[0000950170-24-017900_pcar-20231231.htm:81]** **[0000950170-24-052081_pcar-20240331.htm:45]** 

What factors led to the drop in Commercial paper and bank loans in Q1 2024?

4852e4c06bbd8c38cc9c5473a1e21721c2f8f3cae72ee57f927cca808510d137

Truck

Parts

Other

Financial Services

Total Truck, Parts, and Other

Total Revenue

1aea3fa1698de74ee5af486a8c7ce89671e44e4f15443d6c02a1a1f6d187bba9

Paccar Inc (PCAR)

Financials