Caterpillar Inc. (NYSE:CAT)

Asset Turnover

The reported total asset turnover shows a rising trend from 0.5 in 2020 to a peak of 0.73 in 2023, before slightly declining to 0.7 in 2024. The adjusted total asset turnover closely follows this pattern, increasing steadily from 0.49 in 2020 to 0.72 in 2023, then dipping marginally to 0.69 in 2024. This indicates an overall improvement in asset utilization efficiency over the period, with a slight drop in the most recent year.

Current Ratio

The reported current ratio declines from 1.53 in 2020 to 1.35 in 2023, suggesting a weakening liquidity position over these years, but recovers somewhat to 1.42 in 2024. The adjusted current ratio also trends downward from 1.62 in 2020 to 1.45 in 2023 before recovering to 1.54 in 2024. This indicates a temporary decline in liquidity that shows signs of improvement by the final year.

Debt to Equity Ratio

The reported debt to equity ratio decreases from 2.42 in 2020 to 1.94 in 2023, reflecting a reduction in leverage or reliance on debt financing over time. In 2024, this ratio slightly increases to 1.97. Similarly, the adjusted debt to equity ratio moves downward from 2.08 in 2020 to 1.70 in 2023, then slightly up to 1.75 in 2024. The trend points to a gradual de-leveraging strategy with a small uptick in the latest year.

Debt to Capital Ratio

This ratio remains relatively stable with a minor declining trend. The reported measure drops from 0.71 in 2020 to 0.66 in both 2023 and 2024. The adjusted ratio follows a similar trajectory, descending from 0.68 in 2020 to 0.63 in 2023 and slightly increasing to 0.64 in 2024. This indicates a consistent capital structure with modest reduction in debt proportion.

Financial Leverage

Reported financial leverage gradually decreases from 5.11 in 2020 to 4.49 in 2023, then stabilizes close to this level at 4.5 in 2024. The adjusted leverage also declines steadily from 4.35 in 2020 to 3.90 in 2023, with a slight increase to 3.97 in 2024. This trend suggests a cautious reduction in reliance on financial leverage over the years.

Net Profit Margin

The reported net profit margin exhibits significant volatility, rising sharply from 7.68% in 2020 to 13.47% in 2021, with a slight decrease to 11.85% in 2022, followed by a notable improvement to 16.18% in 2023 and reaching 17.59% in 2024. The adjusted margin shows a similar pattern with a peak in 2023 at 16.62% before a slight decline to 15.91% in 2024. Overall, profitability has strengthened considerably over the period.

Return on Equity (ROE)

The reported ROE presents a strong upward trend from 19.56% in 2020 to 55.37% in 2024, with consistent growth each year. The adjusted ROE also rises from 20.49% in 2020 to a peak of 46.87% in 2023 but declines slightly to 43.78% in 2024. This indicates improved efficiency in generating shareholder returns, albeit with some moderation in the most recent year.

Return on Assets (ROA)

The reported ROA nearly triples from 3.83% in 2020 to 11.81% in 2023 and further increases to 12.3% in 2024, demonstrating markedly enhanced asset profitability. The adjusted ROA reflects a similar trend, rising from 4.71% in 2020 to 12.02% in 2023 before a slight decrease to 11.04% in 2024. These figures highlight substantial gains in asset efficiency over time with a minor pullback recently.

Sales of Machinery, Energy & Transportation

The sales figures exhibited a consistent upward trend from 2020 to 2023, rising from $39,022 million to $63,869 million. However, in 2024, there was a slight decline to $61,363 million, indicating a potential plateau or setback following several years of growth.

Total assets

Total assets showed moderate fluctuations over the period. Starting at $78,324 million in 2020, assets increased to $82,793 million in 2021, then slightly decreased to $81,943 million in 2022. Subsequently, assets grew again to $87,476 million in 2023 and stabilized around $87,764 million in 2024, suggesting relative stability with gradual expansion.

Reported total asset turnover

This ratio, which measures sales generated per unit of asset, improved steadily from 0.50 in 2020 to a peak of 0.73 in 2023. The figure then declined marginally to 0.70 in 2024, following a similar pattern to the sales trend, implying a slight decrease in asset efficiency or sales relative to assets in the most recent year.

Adjusted total assets

Adjusted total assets closely mirrored the movement of total assets, increasing from $79,098 million in 2020 to a peak of $88,265 million in 2023. In 2024, adjusted assets remained almost unchanged at $88,437 million, indicating consistent asset base adjustments over the years.

Adjusted total asset turnover

The adjusted turnover ratio followed a general upward pattern from 0.49 in 2020 to 0.72 in 2023, reflecting improving efficiency in the utilization of adjusted assets to generate sales. A minor decrease to 0.69 occurred in 2024, consistent with the trends observed in sales and reported asset turnover ratios.

The analysis of the annual financial data over the five-year period reveals several notable trends in the company's liquidity position and the management of its current assets and liabilities.

Current assets

The current assets exhibit a generally increasing trend from US$39,464 million at the end of 2020 to a peak of US$46,949 million by the end of 2023. However, a slight decline is observed in 2024, with current assets decreasing to US$45,682 million. This pattern suggests growth in short-term resources over the majority of the period followed by a minor contraction in the most recent year.

Current liabilities

Current liabilities also increase consistently from US$25,717 million in 2020 to a high of US$34,728 million in 2023. In 2024, there is a reduction to US$32,272 million, indicating the company reduced its short-term obligations after a steady rise. This interplay between current liabilities and assets is critical in understanding liquidity dynamics.

Reported current ratio

The reported current ratio declines progressively from 1.53 in 2020 to a low of 1.35 in 2023, which points to a diminishing buffer of current assets relative to current liabilities over these years. Nonetheless, an improvement to 1.42 in 2024 suggests a partial recovery in short-term financial strength.

Adjusted current assets

Adjusted current assets follow a pattern similar to reported current assets but at higher levels, increasing from US$41,596 million in 2020 to US$50,372 million in 2023 before a minor decrease to US$49,546 million in 2024. The upward trend confirms expanded liquid or near-liquid assets when adjustments are accounted for.

Adjusted current ratio

This ratio, based on adjusted current assets, consistently remains above the reported current ratio, starting at 1.62 in 2020 and decreasing to 1.45 in 2023. It then shows a recovery to 1.54 in 2024. This implies that adjustments to current assets have a positive effect on perceived liquidity, and the general trend mirrors that of the reported current ratio with slight fluctuations.

In summary, the data indicates that the company experienced growth in both current assets and liabilities over the observed period, reflecting increased operational scale or activity. The gradual decline in liquidity ratios until 2023 signals a tightening in short-term financial flexibility, which was partially reversed in 2024. The adjusted measures corroborate the overall liquidity trend while suggesting a stronger position when non-standard adjustments to current assets are considered.

Total Debt

The total debt exhibits a generally stable trend with a slight fluctuation over the observed five-year period. Starting at $37,163 million at the end of 2020, it increased marginally to $37,789 million in 2021, then decreased to $36,993 million in 2022. Subsequently, it rose again in 2023 and 2024, reaching $37,878 million and $38,409 million respectively. The overall change suggests management has maintained a consistent debt level with minor adjustments annually.

Equity Attributable to Common Shareholders

Equity attributable to common shareholders shows an upward trend with some volatility. It increased from $15,331 million in 2020 to a peak of $19,494 million in 2023, representing notable growth. There was a slight decline in 2022 before this peak, followed by stabilization at $19,491 million in 2024. This indicates effective equity growth strategies, particularly strong recovery after 2022.

Reported Debt to Equity Ratio

The reported debt to equity ratio displays a clear declining trend from 2.42 in 2020 to 1.94 in 2023, indicating improved leverage and possibly reduced financial risk. In 2024, the ratio slightly increased to 1.97 but remained significantly lower than at the beginning of the period. This improvement is consistent with the relatively steady debt levels combined with stronger equity base.

Adjusted Total Debt

The adjusted total debt figures follow a pattern similar to total debt but at a slightly higher magnitude, starting at $37,783 million in 2020 and gradually increasing to $39,011 million in 2024. The upward movement suggests some additional liabilities or adjustments factored in, with a steady increase especially in the last two years.

Adjusted Total Stockholders’ Equity

Adjusted total stockholders’ equity consistently increased, rising from $18,182 million in 2020 to $22,640 million in 2023 before a small reduction to $22,299 million in 2024. This rise confirms strengthening shareholder equity when considering all adjustments, supporting enhanced financial stability over time.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio demonstrates a steady decrease from 2.08 in 2020 to 1.70 in 2023, indicating an improving capital structure with reduced reliance on debt relative to equity on an adjusted basis. A slight uptick to 1.75 in 2024 occurs but remains well below earlier levels, reinforcing the trend of deleveraging.

Total Debt

The total debt exhibited minor fluctuations over the five-year period. Starting at $37,163 million in 2020, it slightly increased to $37,789 million in 2021, then decreased to $36,993 million in 2022. Subsequently, it rose again to $37,878 million in 2023 and further to $38,409 million in 2024, reflecting a generally stable but slightly upward trend in debt levels.

Total Capital

Total capital showed a moderate increase from $52,494 million in 2020 to $57,372 million in 2023, with a small increment to $57,900 million in 2024. Notably, there was a decline from 2021 ($54,273 million) to 2022 ($52,862 million), but the overall trajectory across the period was upward, suggesting gradual capital growth.

Reported Debt to Capital Ratio

The reported debt to capital ratio decreased from 0.71 in 2020 to 0.66 in both 2023 and 2024. This indicates a reduction in leverage over time, implying improved capital structure or increased equity relative to debt.

Adjusted Total Debt

Adjusted total debt closely mirrors the pattern of total debt, starting at $37,783 million in 2020 and rising steadily to $39,011 million in 2024. The trend shows a gradual increase, with a peak in 2024, suggesting adjustments account for additional liabilities or refinements not captured in reported total debt.

Adjusted Total Capital

Adjusted total capital grew consistently from $55,965 million in 2020 to $61,310 million in 2024. There was a small decline in 2022 compared to 2021, but the overall trend is upward, indicating strengthening capital base when adjustments are considered.

Adjusted Debt to Capital Ratio

This ratio shows a declining trend from 0.68 in 2020 to 0.63 in 2023, followed by a slight increase to 0.64 in 2024. The general decrease suggests an improvement in leverage, although the minor uptick at the end indicates some slight weakening of the debt-to-capital relationship.

The analysis of the financial data reveals several noteworthy trends over the five-year period from 2020 to 2024.

Total Assets

Total assets increased steadily from 78,324 million USD in 2020 to 87,764 million USD in 2024, indicating a gradual growth in the company's asset base. The growth was somewhat consistent, with a slight dip observed in 2022, followed by a recovery and peak in 2024.

Equity Attributable to Common Shareholders

Equity attributable to common shareholders showed an overall upward trend, increasing from 15,331 million USD in 2020 to 19,491 million USD in 2024. This represents a significant enhancement in shareholders' stake, with the most noticeable rise occurring between 2022 and 2023.

Reported Financial Leverage

The reported financial leverage ratio declined from 5.11 in 2020 to 4.5 in 2024, suggesting a decrease in reliance on debt financing relative to equity. The ratio showed a small increase in 2022 but resumed a downward trajectory thereafter, reaching its lowest point in 2023 before slightly increasing in 2024.

Adjusted Total Assets

Adjusted total assets followed a similar pattern to total assets, rising from 79,098 million USD in 2020 to 88,437 million USD in 2024. The adjusted figures suggest a slightly higher asset base than reported totals, with consistent growth each year, reflecting potentially refined valuation methodologies or reclassifications.

Adjusted Total Stockholders’ Equity

Adjusted total stockholders’ equity increased from 18,182 million USD in 2020 to 22,299 million USD in 2024. Like the reported equity, this adjusted measure shows a steady improvement, with a notable jump between 2022 and 2023, indicating enhanced shareholder value under adjusted accounting measures.

Adjusted Financial Leverage

The adjusted financial leverage ratio decreased from 4.35 in 2020 to 3.97 in 2024, mirroring the trend observed in the reported leverage but at a consistently lower level. The steady decline, interrupted only by a slight increase in 2024, suggests an overall reduction in debt dependency when viewed through the adjusted financial framework.

In summary, the data indicates growth in asset base and shareholder equity over the analyzed period, accompanied by a gradual reduction in financial leverage. Both reported and adjusted measures corroborate these trends, highlighting improved financial stability and equity strength, with a strategic shift towards lower debt reliance that supports sustainable financial health.

The financial data reveals several noteworthy trends over the five-year period from 2020 to 2024. A consistent upward trajectory is observed in profit attributable to common stockholders, which more than tripled from $2,998 million in 2020 to $10,792 million in 2024. This signals significant growth in profitability at the shareholder level.

Sales of Machinery, Energy & Transportation experienced a strong increase from $39,022 million in 2020 to a peak of $63,869 million in 2023, followed by a moderate decline to $61,363 million in 2024. This suggests robust business expansion until 2023, with a slight contraction or rebound effect in the final year.

Examining the profitability margins, the reported net profit margin rose from 7.68% in 2020 to 17.59% in 2024, demonstrating enhancing operational efficiency and profitability relative to sales. The margin peaked at 16.18% in 2023 before further increasing to 17.59% in 2024, indicating strong margin improvement even amid the sales decrease observed in the last year.

Adjusted profit of consolidated and affiliated companies showed steady growth from $3,725 million in 2020 to $10,612 million in 2023, followed by a decline to $9,763 million in 2024. This pattern parallels the sales trend, suggesting that adjustments reflect operational realities and possibly non-recurring items affecting earnings.

The adjusted net profit margin grew from 9.55% in 2020 to 16.62% in 2023, then slightly decreased to 15.91% in 2024. This minor reduction in adjusted margin alongside lower adjusted profit in 2024 could indicate some pressure on profitability despite historically strong performance.

Profitability Trends

Profit attributable to common stockholders increased significantly, more than tripling over five years, with consistent improvements in net profit margins.

Sales Dynamics

Sales increased steadily until 2023, followed by a modest contraction in 2024, potentially signaling changes in market demand or business cycles.

Adjusted Profit and Margins

Adjusted profits and margins generally improved through 2023 but showed signs of weakening in 2024, suggesting emerging challenges or the impact of non-recurring factors.

Overall Insight

The data indicates that the company experienced strong growth in both revenues and profitability through most of the period analyzed, peaking in 2023 before encountering some pressure in the final year. Operational efficiency improved as reflected in expanding profit margins, although 2024 data suggests a need for monitoring potential risks affecting sales and adjusted earnings.

Profit Attributable to Common Stockholders

The profit showed a substantial increase from 2020 to 2024. Starting at 2,998 million US dollars in 2020, it more than doubled in 2021 to 6,489 million US dollars. The upward trend continued steadily through 2023, reaching 10,335 million US dollars, with a slight increase to 10,792 million US dollars in 2024. This indicates strong and consistent growth in profitability over the five-year period.

Equity Attributable to Common Shareholders

Equity experienced moderate growth overall. It increased from 15,331 million US dollars in 2020 to a peak of 19,494 million US dollars in 2023. The value slightly declined to 19,491 million US dollars in 2024, showing stability with minimal change from the previous year.

Reported Return on Equity (ROE)

Reported ROE demonstrated a clear upward trajectory. Beginning at 19.56% in 2020, it more than doubled by 2021 to 39.37%, and then continued to rise, reaching 55.37% in 2024. This reflects increasing efficiency and profitability in generating returns from shareholders’ equity.

Adjusted Profit of Consolidated and Affiliated Companies

Adjusted profit followed a similar growth pattern as the reported profit. It started at 3,725 million US dollars in 2020 and grew steadily until 2023, when it peaked at 10,612 million US dollars. However, it slightly decreased to 9,763 million US dollars in 2024, indicating a mild contraction after a period of rapid growth.

Adjusted Total Stockholders’ Equity

The adjusted equity showed consistent growth from 18,182 million US dollars in 2020 to 22,640 million US dollars in 2023. A slight decline occurred in 2024, with equity falling to 22,299 million US dollars, but it remains substantially higher than the 2020 level.

Adjusted Return on Equity (ROE)

The adjusted ROE increased markedly from 20.49% in 2020 to a peak of 46.87% in 2023 before decreasing to 43.78% in 2024. This suggests that while the company's adjusted profitability relative to equity improved significantly during the period, there was a small decline in efficiency in generating adjusted returns in the final year.

Over the five-year period, the company exhibits a clear upward trajectory in profitability, assets, and returns.

Profit attributable to common stockholders

The profit increased steadily from 2,998 million US dollars in 2020 to 10,792 million US dollars in 2024. Notable growth occurred especially between 2022 and 2023, where profit jumped from 6,705 million to 10,335 million, indicating a significant improvement in operational performance or favorable market conditions during that period.

Total assets

Total assets showed moderate growth from 78,324 million US dollars in 2020 to 87,764 million US dollars in 2024. The asset base increased gradually each year, with a slight dip in 2022 compared to 2021, before resuming its upward trend through 2023 and 2024. This suggests a generally stable but cautiously expanding asset management approach.

Reported Return on Assets (ROA)

The reported ROA improved significantly from 3.83% in 2020 to 12.3% in 2024. This increase reflects enhanced efficiency and profitability in utilizing assets to generate earnings. The most notable improvements occurred after 2021, with ROA trending upward annually, underscoring successful asset deployment strategies.

Adjusted profit of consolidated and affiliated companies

Adjusted profit values rose from 3,725 million US dollars in 2020 to a peak of 10,612 million in 2023 before declining slightly to 9,763 million in 2024. This pattern parallels the reported profit but with a minor decrease in the final year, possibly indicating adjustments for non-operating factors or extraordinary items affecting net results.

Adjusted total assets

Adjusted total assets increased consistently from 79,098 million US dollars in 2020 to 88,437 million US dollars in 2024. The trend is slightly smoother than nominal total assets, reflecting consistent asset base growth after adjustments for potential accounting or valuation differences.

Adjusted ROA

Adjusted ROA rose from 4.71% in 2020 to 12.02% in 2023, then decreased to 11.04% in 2024. Despite the slight reduction in the final year, the adjusted ROA trend demonstrates overall improvement in asset efficiency after accounting adjustments, mirroring general profitability gains but with some volatility in the latest period.

In summary, the company shows strong profitability growth and asset expansion over the period, with efficiency in asset use improving markedly. Both reported and adjusted figures indicate enhanced operational performance, although some volatility appears in adjusted profitability measures toward the end of the timeline. This suggests that while the company is growing and becoming more efficient, external or non-operating factors may have influenced recent adjusted results.