Stock Analysis on Net
Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Caterpillar Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2024 55.04% = 12.38% × 4.45
Jun 30, 2024 64.26% = 13.21% × 4.86
Mar 31, 2024 63.77% = 13.43% × 4.75
Dec 31, 2023 53.02% = 11.81% × 4.49
Sep 30, 2023 44.48% = 10.50% × 4.24
Jun 30, 2023 45.85% = 9.79% × 4.68
Mar 31, 2023 39.18% = 8.50% × 4.61
Dec 31, 2022 42.25% = 8.18% × 5.16
Sep 30, 2022 47.28% = 9.11% × 5.19
Jun 30, 2022 42.96% = 8.33% × 5.16
Mar 31, 2022 38.07% = 7.90% × 4.82
Dec 31, 2021 39.37% = 7.84% × 5.02
Sep 30, 2021 30.90% = 6.37% × 4.85
Jun 30, 2021 26.09% = 5.37% × 4.85
Mar 31, 2021 20.73% = 4.26% × 4.87
Dec 31, 2020 19.56% = 3.83% × 5.11
Sep 30, 2020 22.18% = 4.32% × 5.13
Jun 30, 2020 30.16% = 5.41% × 5.57
Mar 31, 2020 37.36% = 6.99% × 5.35
Dec 31, 2019 41.77% = 7.77% × 5.38
Sep 30, 2019 — = — × 5.22
Jun 30, 2019 — = — × 5.34
Mar 31, 2019 — = — × 5.10

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in financial leverage ratio.

Three-Component Disaggregation of ROE

Caterpillar Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 55.04% = 17.15% × 0.72 × 4.45
Jun 30, 2024 64.26% = 17.46% × 0.76 × 4.86
Mar 31, 2024 63.77% = 17.65% × 0.76 × 4.75
Dec 31, 2023 53.02% = 16.18% × 0.73 × 4.49
Sep 30, 2023 44.48% = 14.35% × 0.73 × 4.24
Jun 30, 2023 45.85% = 13.53% × 0.72 × 4.68
Mar 31, 2023 39.18% = 12.10% × 0.70 × 4.61
Dec 31, 2022 42.25% = 11.85% × 0.69 × 5.16
Sep 30, 2022 47.28% = 13.70% × 0.66 × 5.19
Jun 30, 2022 42.96% = 13.19% × 0.63 × 5.16
Mar 31, 2022 38.07% = 13.02% × 0.61 × 4.82
Dec 31, 2021 39.37% = 13.47% × 0.58 × 5.02
Sep 30, 2021 30.90% = 11.28% × 0.57 × 4.85
Jun 30, 2021 26.09% = 10.17% × 0.53 × 4.85
Mar 31, 2021 20.73% = 8.53% × 0.50 × 4.87
Dec 31, 2020 19.56% = 7.68% × 0.50 × 5.11
Sep 30, 2020 22.18% = 8.12% × 0.53 × 5.13
Jun 30, 2020 30.16% = 9.50% × 0.57 × 5.57
Mar 31, 2020 37.36% = 11.06% × 0.63 × 5.35
Dec 31, 2019 41.77% = 12.00% × 0.65 × 5.38
Sep 30, 2019 — = — × — × 5.22
Jun 30, 2019 — = — × — × 5.34
Mar 31, 2019 — = — × — × 5.10

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in financial leverage ratio.

Five-Component Disaggregation of ROE

Caterpillar Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 55.04% = 0.80 × 0.96 × 22.42% × 0.72 × 4.45
Jun 30, 2024 64.26% = 0.79 × 0.96 × 22.83% × 0.76 × 4.86
Mar 31, 2024 63.77% = 0.80 × 0.96 × 22.81% × 0.76 × 4.75
Dec 31, 2023 53.02% = 0.79 × 0.96 × 21.34% × 0.73 × 4.49
Sep 30, 2023 44.48% = 0.76 × 0.96 × 19.61% × 0.73 × 4.24
Jun 30, 2023 45.85% = 0.76 × 0.96 × 18.57% × 0.72 × 4.68
Mar 31, 2023 39.18% = 0.76 × 0.95 × 16.81% × 0.70 × 4.61
Dec 31, 2022 42.25% = 0.76 × 0.95 × 16.29% × 0.69 × 5.16
Sep 30, 2022 47.28% = 0.80 × 0.95 × 17.96% × 0.66 × 5.19
Jun 30, 2022 42.96% = 0.80 × 0.95 × 17.36% × 0.63 × 5.16
Mar 31, 2022 38.07% = 0.79 × 0.95 × 17.41% × 0.61 × 4.82
Dec 31, 2021 39.37% = 0.79 × 0.94 × 18.09% × 0.58 × 5.02
Sep 30, 2021 30.90% = 0.78 × 0.93 × 15.63% × 0.57 × 4.85
Jun 30, 2021 26.09% = 0.77 × 0.92 × 14.40% × 0.53 × 4.85
Mar 31, 2021 20.73% = 0.76 × 0.89 × 12.49% × 0.50 × 4.87
Dec 31, 2020 19.56% = 0.75 × 0.89 × 11.58% × 0.50 × 5.11
Sep 30, 2020 22.18% = 0.75 × 0.90 × 12.06% × 0.53 × 5.13
Jun 30, 2020 30.16% = 0.74 × 0.92 × 13.88% × 0.57 × 5.57
Mar 31, 2020 37.36% = 0.75 × 0.94 × 15.68% × 0.63 × 5.35
Dec 31, 2019 41.77% = 0.78 × 0.95 × 16.27% × 0.65 × 5.38
Sep 30, 2019 — = — × — × — × — × 5.22
Jun 30, 2019 — = — × — × — × — × 5.34
Mar 31, 2019 — = — × — × — × — × 5.10

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in financial leverage ratio.

Two-Component Disaggregation of ROA

Caterpillar Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2024 12.38% = 17.15% × 0.72
Jun 30, 2024 13.21% = 17.46% × 0.76
Mar 31, 2024 13.43% = 17.65% × 0.76
Dec 31, 2023 11.81% = 16.18% × 0.73
Sep 30, 2023 10.50% = 14.35% × 0.73
Jun 30, 2023 9.79% = 13.53% × 0.72
Mar 31, 2023 8.50% = 12.10% × 0.70
Dec 31, 2022 8.18% = 11.85% × 0.69
Sep 30, 2022 9.11% = 13.70% × 0.66
Jun 30, 2022 8.33% = 13.19% × 0.63
Mar 31, 2022 7.90% = 13.02% × 0.61
Dec 31, 2021 7.84% = 13.47% × 0.58
Sep 30, 2021 6.37% = 11.28% × 0.57
Jun 30, 2021 5.37% = 10.17% × 0.53
Mar 31, 2021 4.26% = 8.53% × 0.50
Dec 31, 2020 3.83% = 7.68% × 0.50
Sep 30, 2020 4.32% = 8.12% × 0.53
Jun 30, 2020 5.41% = 9.50% × 0.57
Mar 31, 2020 6.99% = 11.06% × 0.63
Dec 31, 2019 7.77% = 12.00% × 0.65
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2024 is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

Caterpillar Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 30, 2024 12.38% = 0.80 × 0.96 × 22.42% × 0.72
Jun 30, 2024 13.21% = 0.79 × 0.96 × 22.83% × 0.76
Mar 31, 2024 13.43% = 0.80 × 0.96 × 22.81% × 0.76
Dec 31, 2023 11.81% = 0.79 × 0.96 × 21.34% × 0.73
Sep 30, 2023 10.50% = 0.76 × 0.96 × 19.61% × 0.73
Jun 30, 2023 9.79% = 0.76 × 0.96 × 18.57% × 0.72
Mar 31, 2023 8.50% = 0.76 × 0.95 × 16.81% × 0.70
Dec 31, 2022 8.18% = 0.76 × 0.95 × 16.29% × 0.69
Sep 30, 2022 9.11% = 0.80 × 0.95 × 17.96% × 0.66
Jun 30, 2022 8.33% = 0.80 × 0.95 × 17.36% × 0.63
Mar 31, 2022 7.90% = 0.79 × 0.95 × 17.41% × 0.61
Dec 31, 2021 7.84% = 0.79 × 0.94 × 18.09% × 0.58
Sep 30, 2021 6.37% = 0.78 × 0.93 × 15.63% × 0.57
Jun 30, 2021 5.37% = 0.77 × 0.92 × 14.40% × 0.53
Mar 31, 2021 4.26% = 0.76 × 0.89 × 12.49% × 0.50
Dec 31, 2020 3.83% = 0.75 × 0.89 × 11.58% × 0.50
Sep 30, 2020 4.32% = 0.75 × 0.90 × 12.06% × 0.53
Jun 30, 2020 5.41% = 0.74 × 0.92 × 13.88% × 0.57
Mar 31, 2020 6.99% = 0.75 × 0.94 × 15.68% × 0.63
Dec 31, 2019 7.77% = 0.78 × 0.95 × 16.27% × 0.65
Sep 30, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2024 is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Caterpillar Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 30, 2024 17.15% = 0.80 × 0.96 × 22.42%
Jun 30, 2024 17.46% = 0.79 × 0.96 × 22.83%
Mar 31, 2024 17.65% = 0.80 × 0.96 × 22.81%
Dec 31, 2023 16.18% = 0.79 × 0.96 × 21.34%
Sep 30, 2023 14.35% = 0.76 × 0.96 × 19.61%
Jun 30, 2023 13.53% = 0.76 × 0.96 × 18.57%
Mar 31, 2023 12.10% = 0.76 × 0.95 × 16.81%
Dec 31, 2022 11.85% = 0.76 × 0.95 × 16.29%
Sep 30, 2022 13.70% = 0.80 × 0.95 × 17.96%
Jun 30, 2022 13.19% = 0.80 × 0.95 × 17.36%
Mar 31, 2022 13.02% = 0.79 × 0.95 × 17.41%
Dec 31, 2021 13.47% = 0.79 × 0.94 × 18.09%
Sep 30, 2021 11.28% = 0.78 × 0.93 × 15.63%
Jun 30, 2021 10.17% = 0.77 × 0.92 × 14.40%
Mar 31, 2021 8.53% = 0.76 × 0.89 × 12.49%
Dec 31, 2020 7.68% = 0.75 × 0.89 × 11.58%
Sep 30, 2020 8.12% = 0.75 × 0.90 × 12.06%
Jun 30, 2020 9.50% = 0.74 × 0.92 × 13.88%
Mar 31, 2020 11.06% = 0.75 × 0.94 × 15.68%
Dec 31, 2019 12.00% = 0.78 × 0.95 × 16.27%
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in net profit margin ratio over Q3 2024 is the decrease in operating profitability measured by EBIT margin ratio.