Stock Analysis on Net
Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Caterpillar Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Activity Ratio
Total Asset Turnover
Reported 0.73 0.69 0.58 0.50 0.65
Adjusted 0.72 0.68 0.58 0.49 0.64
Liquidity Ratio
Current Ratio
Reported 1.35 1.39 1.46 1.53 1.47
Adjusted 1.45 1.49 1.54 1.62 1.55
Solvency Ratios
Debt to Equity
Reported 1.94 2.33 2.29 2.42 2.58
Adjusted 1.70 1.93 1.96 2.06 2.20
Debt to Capital
Reported 0.66 0.70 0.70 0.71 0.72
Adjusted 0.63 0.66 0.66 0.67 0.69
Financial Leverage
Reported 4.49 5.16 5.02 5.11 5.38
Adjusted 3.89 4.28 4.27 4.31 4.55
Profitability Ratios
Net Profit Margin
Reported 16.18% 11.85% 13.47% 7.68% 12.00%
Adjusted 16.62% 10.95% 12.21% 9.84% 12.45%
Return on Equity (ROE)
Reported 53.02% 42.25% 39.37% 19.56% 41.77%
Adjusted 46.79% 31.87% 30.02% 20.94% 36.34%
Return on Assets (ROA)
Reported 11.81% 8.18% 7.84% 3.83% 7.77%
Adjusted 12.02% 7.44% 7.03% 4.86% 7.98%

Based on: 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), 10-K (reporting date: 2019-12-31).

Financial 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 2021 to 2022 and from 2022 to 2023.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Caterpillar Inc. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Caterpillar Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Caterpillar Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 and from 2022 to 2023.
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 increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Caterpillar Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Caterpillar Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Caterpillar Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Caterpillar Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Sales of Machinery, Energy & Transportation 63,869 56,574 48,188 39,022 50,755
Total assets 87,476 81,943 82,793 78,324 78,453
Activity Ratio
Total asset turnover1 0.73 0.69 0.58 0.50 0.65
Adjusted
Selected Financial Data (US$ in millions)
Sales of Machinery, Energy & Transportation 63,869 56,574 48,188 39,022 50,755
Adjusted total assets2 88,265 83,217 83,723 79,098 79,215
Activity Ratio
Adjusted total asset turnover3 0.72 0.68 0.58 0.49 0.64

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Total asset turnover = Sales of Machinery, Energy & Transportation ÷ Total assets
= 63,869 ÷ 87,476 = 0.73

2 Adjusted total assets. See details »

3 2023 Calculation
Adjusted total asset turnover = Sales of Machinery, Energy & Transportation ÷ Adjusted total assets
= 63,869 ÷ 88,265 = 0.72

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 2021 to 2022 and from 2022 to 2023.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 46,949 43,785 43,455 39,464 39,193
Current liabilities 34,728 31,531 29,847 25,717 26,621
Liquidity Ratio
Current ratio1 1.35 1.39 1.46 1.53 1.47
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 50,372 47,106 46,054 41,596 41,279
Current liabilities 34,728 31,531 29,847 25,717 26,621
Liquidity Ratio
Adjusted current ratio3 1.45 1.49 1.54 1.62 1.55

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 46,949 ÷ 34,728 = 1.35

2 Adjusted current assets. See details »

3 2023 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 50,372 ÷ 34,728 = 1.45

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Caterpillar Inc. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 37,878 36,993 37,789 37,163 37,657
Equity attributable to common shareholders 19,494 15,869 16,484 15,331 14,588
Solvency Ratio
Debt to equity1 1.94 2.33 2.29 2.42 2.58
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 38,452 37,572 38,431 37,783 38,291
Adjusted total stockholders’ equity3 22,680 19,436 19,608 18,346 17,394
Solvency Ratio
Adjusted debt to equity4 1.70 1.93 1.96 2.06 2.20

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to equity = Total debt ÷ Equity attributable to common shareholders
= 37,878 ÷ 19,494 = 1.94

2 Adjusted total debt. See details »

3 Adjusted total stockholders’ equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total stockholders’ equity
= 38,452 ÷ 22,680 = 1.70

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Caterpillar Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 37,878 36,993 37,789 37,163 37,657
Total capital 57,372 52,862 54,273 52,494 52,245
Solvency Ratio
Debt to capital1 0.66 0.70 0.70 0.71 0.72
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 38,452 37,572 38,431 37,783 38,291
Adjusted total capital3 61,132 57,008 58,039 56,129 55,685
Solvency Ratio
Adjusted debt to capital4 0.63 0.66 0.66 0.67 0.69

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 37,878 ÷ 57,372 = 0.66

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 38,452 ÷ 61,132 = 0.63

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Caterpillar Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 87,476 81,943 82,793 78,324 78,453
Equity attributable to common shareholders 19,494 15,869 16,484 15,331 14,588
Solvency Ratio
Financial leverage1 4.49 5.16 5.02 5.11 5.38
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 88,265 83,217 83,723 79,098 79,215
Adjusted total stockholders’ equity3 22,680 19,436 19,608 18,346 17,394
Solvency Ratio
Adjusted financial leverage4 3.89 4.28 4.27 4.31 4.55

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Financial leverage = Total assets ÷ Equity attributable to common shareholders
= 87,476 ÷ 19,494 = 4.49

2 Adjusted total assets. See details »

3 Adjusted total stockholders’ equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total stockholders’ equity
= 88,265 ÷ 22,680 = 3.89

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 increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Profit attributable to common stockholders 10,335 6,705 6,489 2,998 6,093
Sales of Machinery, Energy & Transportation 63,869 56,574 48,188 39,022 50,755
Profitability Ratio
Net profit margin1 16.18% 11.85% 13.47% 7.68% 12.00%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted profit of consolidated and affiliated companies2 10,613 6,195 5,886 3,841 6,321
Sales of Machinery, Energy & Transportation 63,869 56,574 48,188 39,022 50,755
Profitability Ratio
Adjusted net profit margin3 16.62% 10.95% 12.21% 9.84% 12.45%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Net profit margin = 100 × Profit attributable to common stockholders ÷ Sales of Machinery, Energy & Transportation
= 100 × 10,335 ÷ 63,869 = 16.18%

2 Adjusted profit of consolidated and affiliated companies. See details »

3 2023 Calculation
Adjusted net profit margin = 100 × Adjusted profit of consolidated and affiliated companies ÷ Sales of Machinery, Energy & Transportation
= 100 × 10,613 ÷ 63,869 = 16.62%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Caterpillar Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Profit attributable to common stockholders 10,335 6,705 6,489 2,998 6,093
Equity attributable to common shareholders 19,494 15,869 16,484 15,331 14,588
Profitability Ratio
ROE1 53.02% 42.25% 39.37% 19.56% 41.77%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted profit of consolidated and affiliated companies2 10,613 6,195 5,886 3,841 6,321
Adjusted total stockholders’ equity3 22,680 19,436 19,608 18,346 17,394
Profitability Ratio
Adjusted ROE4 46.79% 31.87% 30.02% 20.94% 36.34%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
ROE = 100 × Profit attributable to common stockholders ÷ Equity attributable to common shareholders
= 100 × 10,335 ÷ 19,494 = 53.02%

2 Adjusted profit of consolidated and affiliated companies. See details »

3 Adjusted total stockholders’ equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted profit of consolidated and affiliated companies ÷ Adjusted total stockholders’ equity
= 100 × 10,613 ÷ 22,680 = 46.79%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Caterpillar Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Profit attributable to common stockholders 10,335 6,705 6,489 2,998 6,093
Total assets 87,476 81,943 82,793 78,324 78,453
Profitability Ratio
ROA1 11.81% 8.18% 7.84% 3.83% 7.77%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted profit of consolidated and affiliated companies2 10,613 6,195 5,886 3,841 6,321
Adjusted total assets3 88,265 83,217 83,723 79,098 79,215
Profitability Ratio
Adjusted ROA4 12.02% 7.44% 7.03% 4.86% 7.98%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
ROA = 100 × Profit attributable to common stockholders ÷ Total assets
= 100 × 10,335 ÷ 87,476 = 11.81%

2 Adjusted profit of consolidated and affiliated companies. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted profit of consolidated and affiliated companies ÷ Adjusted total assets
= 100 × 10,613 ÷ 88,265 = 12.02%

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 2021 to 2022 and from 2022 to 2023.