Inventory Disclosure
Adjustment to Inventory: Conversion from LIFO to FIFO
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Caterpillar Inc., balance sheet: inventory

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Raw materials	6,681)	6,492)	6,370)	5,528)	4,021)
Work-in-process	1,438)	1,411)	1,452)	1,318)	1,052)
Finished goods	8,329)	8,308)	8,138)	6,907)	6,054)
Supplies	379)	354)	310)	285)	275)
Inventories	16,827)	16,565)	16,270)	14,038)	11,402)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Inventories	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	Caterpillar Inc. inventories increased from 2022 to 2023 and from 2023 to 2024.

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Inventories
Inventories at LIFO (as reported)	16,827)	16,565)	16,270)	14,038)	11,402)
Add: Inventory LIFO reserve	3,864)	3,423)	3,321)	2,599)	2,132)
Inventories at FIFO (adjusted)	20,691)	19,988)	19,591)	16,637)	13,534)
Adjustment to Current Assets
Current assets (as reported)	45,682)	46,949)	43,785)	43,455)	39,464)
Add: Inventory LIFO reserve	3,864)	3,423)	3,321)	2,599)	2,132)
Current assets (adjusted)	49,546)	50,372)	47,106)	46,054)	41,596)
Adjustment to Total Assets
Total assets (as reported)	87,764)	87,476)	81,943)	82,793)	78,324)
Add: Inventory LIFO reserve	3,864)	3,423)	3,321)	2,599)	2,132)
Total assets (adjusted)	91,628)	90,899)	85,264)	85,392)	80,456)
Adjustment to Equity Attributable To Common Shareholders
Equity attributable to common shareholders (as reported)	19,491)	19,494)	15,869)	16,484)	15,331)
Add: Inventory LIFO reserve	3,864)	3,423)	3,321)	2,599)	2,132)
Equity attributable to common shareholders (adjusted)	23,355)	22,917)	19,190)	19,083)	17,463)
Adjustment to Profit Attributable To Common Stockholders
Profit attributable to common stockholders (as reported)	10,792)	10,335)	6,705)	6,489)	2,998)
Add: Increase (decrease) in inventory LIFO reserve	441)	102)	722)	467)	46)
Profit attributable to common stockholders (adjusted)	11,233)	10,437)	7,427)	6,956)	3,044)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Caterpillar Inc. inventory value on Dec 31, 2024 would be $20,691) (in millions) if the FIFO inventory method was used instead of LIFO. Caterpillar Inc. inventories, valued on a LIFO basis, on Dec 31, 2024 were $16,827). Caterpillar Inc. inventories would have been $3,864) higher than reported on Dec 31, 2024 if the FIFO method had been used instead.

Caterpillar Inc., Financial Data: Reported vs. Adjusted

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Caterpillar Inc., adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Current Ratio
Reported current ratio (LIFO)	1.42	1.35	1.39	1.46	1.53
Adjusted current ratio (FIFO)	1.54	1.45	1.49	1.54	1.62
Net Profit Margin
Reported net profit margin (LIFO)	17.59%	16.18%	11.85%	13.47%	7.68%
Adjusted net profit margin (FIFO)	18.31%	16.34%	13.13%	14.44%	7.80%
Total Asset Turnover
Reported total asset turnover (LIFO)	0.70	0.73	0.69	0.58	0.50
Adjusted total asset turnover (FIFO)	0.67	0.70	0.66	0.56	0.49
Financial Leverage
Reported financial leverage (LIFO)	4.50	4.49	5.16	5.02	5.11
Adjusted financial leverage (FIFO)	3.92	3.97	4.44	4.47	4.61
Return on Equity (ROE)
Reported ROE (LIFO)	55.37%	53.02%	42.25%	39.37%	19.56%
Adjusted ROE (FIFO)	48.10%	45.54%	38.70%	36.45%	17.43%
Return on Assets (ROA)
Reported ROA (LIFO)	12.30%	11.81%	8.18%	7.84%	3.83%
Adjusted ROA (FIFO)	12.26%	11.48%	8.71%	8.15%	3.78%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Caterpillar Inc. adjusted current ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Caterpillar Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Caterpillar Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Caterpillar Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Caterpillar Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Caterpillar Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Caterpillar Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Current assets	45,682)	46,949)	43,785)	43,455)	39,464)
Current liabilities	32,272)	34,728)	31,531)	29,847)	25,717)
Liquidity Ratio
Current ratio¹	1.42	1.35	1.39	1.46	1.53
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted current assets	49,546)	50,372)	47,106)	46,054)	41,596)
Current liabilities	32,272)	34,728)	31,531)	29,847)	25,717)
Liquidity Ratio
Adjusted current ratio²	1.54	1.45	1.49	1.54	1.62

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 45,682 ÷ 32,272 = 1.42

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 49,546 ÷ 32,272 = 1.54

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Caterpillar Inc. adjusted current ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Profit attributable to common stockholders	10,792)	10,335)	6,705)	6,489)	2,998)
Sales of Machinery, Energy & Transportation	61,363)	63,869)	56,574)	48,188)	39,022)
Profitability Ratio
Net profit margin¹	17.59%	16.18%	11.85%	13.47%	7.68%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted profit attributable to common stockholders	11,233)	10,437)	7,427)	6,956)	3,044)
Sales of Machinery, Energy & Transportation	61,363)	63,869)	56,574)	48,188)	39,022)
Profitability Ratio
Adjusted net profit margin²	18.31%	16.34%	13.13%	14.44%	7.80%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Net profit margin = 100 × Profit attributable to common stockholders ÷ Sales of Machinery, Energy & Transportation
= 100 × 10,792 ÷ 61,363 = 17.59%

² Adjusted net profit margin = 100 × Adjusted profit attributable to common stockholders ÷ Sales of Machinery, Energy & Transportation
= 100 × 11,233 ÷ 61,363 = 18.31%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Caterpillar Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Sales of Machinery, Energy & Transportation	61,363)	63,869)	56,574)	48,188)	39,022)
Total assets	87,764)	87,476)	81,943)	82,793)	78,324)
Activity Ratio
Total asset turnover¹	0.70	0.73	0.69	0.58	0.50
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Sales of Machinery, Energy & Transportation	61,363)	63,869)	56,574)	48,188)	39,022)
Adjusted total assets	91,628)	90,899)	85,264)	85,392)	80,456)
Activity Ratio
Adjusted total asset turnover²	0.67	0.70	0.66	0.56	0.49

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Total asset turnover = Sales of Machinery, Energy & Transportation ÷ Total assets
= 61,363 ÷ 87,764 = 0.70

² Adjusted total asset turnover = Sales of Machinery, Energy & Transportation ÷ Adjusted total assets
= 61,363 ÷ 91,628 = 0.67

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Caterpillar Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	87,764)	87,476)	81,943)	82,793)	78,324)
Equity attributable to common shareholders	19,491)	19,494)	15,869)	16,484)	15,331)
Solvency Ratio
Financial leverage¹	4.50	4.49	5.16	5.02	5.11
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted total assets	91,628)	90,899)	85,264)	85,392)	80,456)
Adjusted equity attributable to common shareholders	23,355)	22,917)	19,190)	19,083)	17,463)
Solvency Ratio
Adjusted financial leverage²	3.92	3.97	4.44	4.47	4.61

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Financial leverage = Total assets ÷ Equity attributable to common shareholders
= 87,764 ÷ 19,491 = 4.50

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity attributable to common shareholders
= 91,628 ÷ 23,355 = 3.92

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Caterpillar Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Profit attributable to common stockholders	10,792)	10,335)	6,705)	6,489)	2,998)
Equity attributable to common shareholders	19,491)	19,494)	15,869)	16,484)	15,331)
Profitability Ratio
ROE¹	55.37%	53.02%	42.25%	39.37%	19.56%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted profit attributable to common stockholders	11,233)	10,437)	7,427)	6,956)	3,044)
Adjusted equity attributable to common shareholders	23,355)	22,917)	19,190)	19,083)	17,463)
Profitability Ratio
Adjusted ROE²	48.10%	45.54%	38.70%	36.45%	17.43%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROE = 100 × Profit attributable to common stockholders ÷ Equity attributable to common shareholders
= 100 × 10,792 ÷ 19,491 = 55.37%

² Adjusted ROE = 100 × Adjusted profit attributable to common stockholders ÷ Adjusted equity attributable to common shareholders
= 100 × 11,233 ÷ 23,355 = 48.10%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Caterpillar Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Profit attributable to common stockholders	10,792)	10,335)	6,705)	6,489)	2,998)
Total assets	87,764)	87,476)	81,943)	82,793)	78,324)
Profitability Ratio
ROA¹	12.30%	11.81%	8.18%	7.84%	3.83%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted profit attributable to common stockholders	11,233)	10,437)	7,427)	6,956)	3,044)
Adjusted total assets	91,628)	90,899)	85,264)	85,392)	80,456)
Profitability Ratio
Adjusted ROA²	12.26%	11.48%	8.71%	8.15%	3.78%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROA = 100 × Profit attributable to common stockholders ÷ Total assets
= 100 × 10,792 ÷ 87,764 = 12.30%

² Adjusted ROA = 100 × Adjusted profit attributable to common stockholders ÷ Adjusted total assets
= 100 × 11,233 ÷ 91,628 = 12.26%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Caterpillar Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Caterpillar Inc. (NYSE:CAT)

Analysis of Inventory

Inventory Disclosure

Adjustment to Inventory: Conversion from LIFO to FIFO

Caterpillar Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

Caterpillar Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)