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: 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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Sales of Machinery, Energy & Transportation 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -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 -73.64 -74.98 -76.40 -73.29
Gross margin 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% 26.36% 25.02% 23.60% 26.71%
Revenues of Financial Products 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 6.29 7.08 7.38 7.27
Selling, general and administrative expenses -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 -11.50 -12.20 -12.66 -11.31
Research and development expenses -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 -3.54 -3.73 -3.66 -3.59
Interest expense of Financial Products -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 -1.21 -1.48 -1.60 -1.77
Goodwill impairment charge 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 0.00 0.00 0.00 0.00
Other operating income (expenses) -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 -3.34 -4.01 -4.63 -3.16
Operating profit 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% 13.06% 10.67% 8.42% 14.16%
Interest expense excluding Financial Products -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 -1.23 -1.47 -1.45 -1.14
Other income (expense) 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 -2.92 0.15 0.31 2.24
Consolidated profit before taxes 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% 8.90% 9.35% 7.28% 15.26%
Provision for income taxes -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 -1.58 -2.03 -2.44 -4.29
Profit of consolidated companies 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% 7.32% 7.33% 4.84% 10.97%
Equity in profit (loss) of unconsolidated affiliated companies 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 0.06 -0.05 0.09 0.05
Profit of consolidated and affiliated companies 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% 7.38% 7.27% 4.93% 11.02%
(Profit) loss attributable to noncontrolling interests 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 0.00 -0.03 -0.01 -0.01
Profit attributable to common stockholders 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% 7.38% 7.24% 4.92% 11.01%

Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

The financial data over the reported periods reveals several noteworthy trends and fluctuations in key financial metrics expressed as percentages of sales of Machinery, Energy & Transportation.

Cost of Goods Sold (COGS)
COGS as a percentage of sales demonstrates a general downward trend from around -73% in early 2020 to a lower range near -66% by late 2023, indicating improved cost efficiency. Although there are some fluctuations, the notable improvement in 2023 suggests effective cost management or favorable input conditions. However, starting in early 2024, the percentage rises slightly again, moving back toward the high -60% range by early 2025.
Gross Margin
Gross margin percentages correspondingly improve over the period, rising from mid-20% levels in 2020 and 2021 to consistently above 30% from 2023 onward. The peak gross margin appears around mid-2024 at roughly 36%, reflecting the benefit of reduced cost of goods sold and possibly enhanced pricing power or product mix.
Revenues of Financial Products
This metric shows a slight gradual decline from over 7% at the start of 2020 to a low near 4.5% by late 2022 before rebounding to above 6% by early 2025. This U-shaped trajectory may indicate changing market conditions or shifts in the financial product portfolio affecting income contribution.
Selling, General and Administrative Expenses (SG&A)
SG&A expenses as a percentage of sales have generally declined from about -12% in 2020 to closer to -9% in 2022, suggesting improved operational efficiency. However, from 2023 to 2025, these expenses tend to increase again, nearing nearly -12% by early 2025, indicating a possible rise in investments, inflationary pressures, or other cost increases in overhead.
Research and Development Expenses
R&D expenses remain relatively stable, fluctuating narrowly around -3.5% of sales, with a notable dip to approximately -2.5% in late 2022. This consistency may indicate steady commitment to innovation relative to sales volume, despite some intermittent reductions.
Interest Expense of Financial Products
Interest expenses related to financial products are generally decreasing from early 2020 until early 2021, reflecting reduced financing costs or lower debt levels. However, from late 2021 onwards, they show a rising trend, reaching over -2.4% towards early 2025, which suggests increasing borrowing costs or leverage in the financial product segment.
Goodwill Impairment Charge
There is a singular significant goodwill impairment charge reported at approximately -5.8% in late 2022, indicating a one-time negative impact on earnings related to asset revaluation or acquisition impairments.
Other Operating Income (Expenses)
This item shows variability with downward spikes, including a significant negative effect in late 2022 of nearly -5.8%, tying with the goodwill impairment timing, possibly reflecting the same or related charges. Other periods range between approximately -1.5% and -4%, indicating variable non-core operating impacts.
Operating Profit
Operating profit margins exhibit an overall strong upward trend, moving from low double digits (~8-14%) in 2020 to highs around 22-23% in 2023 and mid-2024 before a slight tapering near 19% by early 2025. This growth is likely driven by improving gross margins and controlled expenses, notwithstanding periodic negative exposures.
Interest Expense Excluding Financial Products
Interest expenses outside financial products remain fairly stable around -0.7% to -1.1%, with minor fluctuations, suggesting consistent financing costs on operations independent of financial products.
Other Income (Expense)
This category oscillates notably, with occasional positive spikes such as 8.1% in late 2021 and mostly low-single-digit values. It reflects variable gains or losses outside core operations, contributing variability to pre-tax profits.
Consolidated Profit Before Taxes
The consolidated pre-tax profit margin recovers from a low of about 7% in mid-2020 to a range consistently above 15% from 2021 onward, peaking near 23.6% in early 2024. This aligns with operating profit trends and indicates improved profitability before tax effects.
Provision for Income Taxes
The tax provision fluctuates moderately between approximately -1.5% and -5.3%, with no clear trend, suggesting variability in effective tax rates or changes in geographic profit distribution.
Profit of Consolidated Companies
This net income metric shows a trend consistent with operating and pre-tax profits, rising sharply from under 5% in mid-2020 to highs around 19% in early 2024, before settling slightly lower but remaining robust near 15% in early 2025.
Equity in Profit (Loss) of Unconsolidated Affiliated Companies
This component remains near zero across all periods, indicating minimal or neutral impact on overall profitability from affiliated investments.
Profit of Consolidated and Affiliated Companies
Combined profit margins including affiliates mirror consolidated profit trends closely, confirming their marginal influence.
(Profit) Loss Attributable to Noncontrolling Interests
Noncontrolling interests show negligible and inconsistent impact on overall profit, fluctuating close to zero without a discernible trend.
Profit Attributable to Common Stockholders
Reflecting net income available to shareholders, this metric rises markedly from about 5% in mid-2020 to peaks near 19% in early 2024, then moderates slightly to about 15% by early 2025, signaling strong earnings growth with some recent stabilization.

In summary, the data indicates a strengthening profitability profile over the four-year span, driven primarily by improved gross margins and controlled cost structures. Interest and other expenses show more volatility, with occasional material impacts such as the 2022 goodwill impairment. Financial product revenues and related interest expenses fluctuate but seem to be gradually improving contributions. Overall expense management aligns with profit growth, though recent increases in SG&A and financial product interest costs suggest vigilance is warranted. Tax provisions and minor affiliates' effects remain relatively stable and do not materially affect the overall trends.