Stock Analysis on Net
Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

Common-Size Income Statement 
Quarterly Data

Caterpillar Inc., common-size consolidated income statement (quarterly data)

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3 months ended: Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Sales of Machinery, Energy & Transportation 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -73.11 -69.79 -68.95 -67.01 -67.32 -66.09 -64.08 -64.59 -67.85 -66.19 -66.88 -66.91 -73.18 -71.45 -73.68 -74.18 -76.38 -73.61 -72.84 -71.59
Gross margin 26.89% 30.21% 31.05% 32.99% 32.68% 33.91% 35.92% 35.41% 32.15% 33.81% 33.12% 33.09% 26.82% 28.55% 26.32% 25.82% 23.62% 26.39% 27.16% 28.41%
Revenues of Financial Products 5.11 5.45 5.71 6.51 5.76 5.74 5.36 5.61 5.13 5.14 4.67 5.05 4.57 5.01 5.23 5.46 5.35 5.89 5.71 6.22
Selling, general and administrative expenses -10.31 -10.89 -10.81 -11.91 -11.54 -10.96 -10.43 -10.54 -10.81 -10.16 -9.24 -9.69 -9.32 -9.81 -10.53 -10.45 -10.86 -11.45 -11.19 -11.07
Research and development expenses -3.09 -3.32 -3.52 -3.59 -3.39 -3.50 -3.38 -3.48 -3.41 -3.47 -3.19 -3.13 -2.53 -3.33 -3.55 -3.55 -3.35 -3.65 -3.66 -3.34
Interest expense of Financial Products -1.93 -2.07 -2.14 -2.44 -2.20 -2.21 -1.98 -1.99 -1.77 -1.75 -1.48 -1.44 -1.18 -1.06 -0.89 -0.82 -0.79 -0.95 -0.95 -1.12
Goodwill impairment charge 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -5.83 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other operating income (expenses) -2.07 -1.14 -2.05 -2.29 -2.24 -2.33 -3.51 -1.49 -1.98 -2.00 -1.81 -5.80 -1.95 -2.37 -2.24 -2.06 -1.68 -2.03 -2.40 -2.89
Operating profit 14.61% 18.25% 18.25% 19.28% 19.07% 20.66% 21.98% 23.52% 19.30% 21.57% 22.07% 18.09% 10.59% 16.98% 14.36% 14.40% 12.30% 14.21% 14.67% 16.21%
Interest expense excluding Financial Products -0.70 -0.80 -0.80 -0.87 -0.70 -0.82 -0.86 -0.96 -0.78 -0.81 -0.77 -0.85 -0.74 -0.76 -0.80 -0.85 -0.86 -0.97 -0.98 -1.27
Other income (expense) 2.71 1.24 0.54 0.80 2.78 0.50 0.98 1.04 1.48 1.22 0.77 0.21 3.38 1.69 1.92 1.96 8.12 1.92 1.65 2.90
Consolidated profit before taxes 16.62% 18.70% 17.98% 19.21% 21.15% 20.34% 22.10% 23.61% 20.01% 21.99% 22.07% 17.44% 13.23% 17.92% 15.48% 15.51% 19.56% 15.16% 15.34% 17.84%
Provision for income taxes -3.91 -5.00 -4.12 -4.29 -3.02 -4.22 -5.28 -4.60 -3.62 -4.59 -4.55 -4.69 -4.06 -3.69 -3.15 -3.64 -3.28 -3.14 -3.85 -4.24
Profit of consolidated companies 12.71% 13.70% 13.86% 14.92% 18.13% 16.13% 16.82% 19.01% 16.39% 17.39% 17.53% 12.76% 9.17% 14.22% 12.33% 11.87% 16.29% 12.02% 11.48% 13.60%
Equity in profit of unconsolidated affiliated companies 0.48 0.05 0.04 0.05 0.07 0.05 0.11 0.07 0.07 0.08 0.15 0.11 -0.01 0.06 0.03 0.05 -0.10 0.18 0.11 0.08
Profit of consolidated and affiliated companies 13.19% 13.75% 13.90% 14.97% 18.20% 16.17% 16.93% 19.08% 16.46% 17.47% 17.67% 12.86% 9.16% 14.29% 12.36% 11.93% 16.19% 12.20% 11.60% 13.68%
(Profit) loss attributable to noncontrolling interests 0.01 0.01 0.00 0.00 0.01 0.01 0.00 0.01 0.02 0.01 -0.01 0.01 0.00 0.01 0.00 0.00 0.00 -0.02 -0.01 -0.01
Profit attributable to common stockholders 13.20% 13.75% 13.90% 14.97% 18.20% 16.18% 16.93% 19.09% 16.48% 17.48% 17.66% 12.87% 9.16% 14.29% 12.36% 11.93% 16.19% 12.18% 11.59% 13.67%

Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

The common-size income statement reveals several noteworthy trends in the company’s financial performance between March 2021 and December 2025. Overall, the period demonstrates considerable fluctuation in profitability, influenced by changes in cost structure, operating expenses, and other income/expenses. A significant disruption is observed in late 2021 and early 2022, followed by a recovery and subsequent stabilization with ongoing variability.

Gross Margin
Gross margin exhibited a declining trend from 28.41% in March 2021 to a low of 23.62% in December 2021. It then recovered, peaking at 33.81% in September 2023, before decreasing to 26.89% in December 2025. This suggests potential improvements in production efficiency or pricing power during the recovery period, followed by renewed cost pressures or pricing adjustments. The most recent value indicates a return towards levels seen earlier in the period.
Cost of Goods Sold
The cost of goods sold, as a percentage of sales, generally increased from -71.59% in March 2021 to -76.38% in December 2021, mirroring the gross margin decline. A subsequent decrease to -66.19% in September 2023 coincided with the gross margin improvement. However, costs have risen again, reaching -73.11% in December 2025, indicating increasing input costs or less efficient production processes in the latter part of the analyzed period.
Operating Profit
Operating profit followed a similar pattern to gross margin, declining to 12.30% in December 2021 before recovering to a high of 22.07% in June 2023. It then experienced a decline, ending at 14.61% in December 2025. This indicates that changes in gross margin are a primary driver of operating profitability. The impact of operating expenses appears relatively stable, with fluctuations not fully explaining the profit swings.
Selling, General & Administrative Expenses
Selling, general, and administrative expenses remained relatively stable as a percentage of sales, fluctuating between -9.32% and -11.99% throughout the period. While there are minor variations, these expenses do not appear to be a major contributor to the observed profit fluctuations.
Interest Expense
Interest expense related to financial products increased steadily from -0.95% in June 2021 to -1.93% in December 2025. Interest expense excluding financial products also showed an increasing trend, though less pronounced. This suggests a growing debt burden or rising interest rates impacting the company’s financial obligations.
Other Income/Expenses & Goodwill Impairment
Other operating income (expenses) exhibited volatility, with a significant negative impact from a goodwill impairment charge of -5.83% in December 2022. Excluding this one-time event, other income/expenses fluctuated, contributing to the overall variability in profitability. Other income also showed some fluctuation, but generally remained positive.
Net Profit
Profit attributable to common stockholders mirrored the trends in operating profit, declining to 9.16% in December 2022 and recovering to 17.66% in June 2023 before falling to 13.20% in December 2025. The provision for income taxes also fluctuated, impacting the final net profit margin.

In conclusion, the company experienced a period of disruption in late 2021 and early 2022, followed by a recovery in profitability. However, recent quarters indicate a renewed decline in margins, potentially driven by increasing costs. Interest expenses are trending upward, and the impact of other income/expenses and one-time events like goodwill impairment contribute to overall volatility. Continued monitoring of cost management, pricing strategies, and debt levels will be crucial for future performance.

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