Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Caterpillar Inc., solvency ratios
Based on: 10-K (reporting date: 2024-12-31), 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Caterpillar Inc. debt to equity ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Caterpillar Inc. debt to equity ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Caterpillar Inc. debt to capital ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Caterpillar Inc. debt to capital ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Caterpillar Inc. debt to assets ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Caterpillar Inc. debt to assets ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Caterpillar Inc. financial leverage ratio decreased from 2022 to 2023 but then slightly increased from 2023 to 2024. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Caterpillar Inc. interest coverage ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Caterpillar Inc. fixed charge coverage ratio improved from 2022 to 2023 and from 2023 to 2024. |
Debt to Equity
Caterpillar Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,393) | 4,643) | 5,957) | 5,404) | 2,015) | |
| Long-term debt due within one year | 6,665) | 8,763) | 5,322) | 6,352) | 9,149) | |
| Long-term debt due after one year | 27,351) | 24,472) | 25,714) | 26,033) | 25,999) | |
| Total debt | 38,409) | 37,878) | 36,993) | 37,789) | 37,163) | |
| Equity attributable to common shareholders | 19,491) | 19,494) | 15,869) | 16,484) | 15,331) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.97 | 1.94 | 2.33 | 2.29 | 2.42 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Eaton Corp. plc | 0.50 | 0.49 | 0.51 | 0.52 | 0.54 | |
| GE Aerospace | 1.00 | 0.77 | 0.89 | 0.87 | 2.11 | |
| Honeywell International Inc. | 1.67 | 1.29 | 1.17 | 1.06 | 1.28 | |
| Lockheed Martin Corp. | 3.20 | 2.55 | 1.68 | 1.07 | 2.02 | |
| RTX Corp. | 0.69 | 0.73 | 0.44 | 0.43 | 0.44 | |
| Debt to Equity, Sector | ||||||
| Capital Goods | 1.54 | 1.54 | 1.33 | 1.26 | 1.75 | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.37 | 1.50 | 1.41 | 1.36 | 1.81 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to equity = Total debt ÷ Equity attributable to common shareholders
= 38,409 ÷ 19,491 = 1.97
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Caterpillar Inc. debt to equity ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Debt to Equity (including Operating Lease Liability)
Caterpillar Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,393) | 4,643) | 5,957) | 5,404) | 2,015) | |
| Long-term debt due within one year | 6,665) | 8,763) | 5,322) | 6,352) | 9,149) | |
| Long-term debt due after one year | 27,351) | 24,472) | 25,714) | 26,033) | 25,999) | |
| Total debt | 38,409) | 37,878) | 36,993) | 37,789) | 37,163) | |
| Current operating lease liabilities (recognized in Other current liabilities) | 143) | 147) | 151) | 158) | 163) | |
| Noncurrent operating lease liabilities (recognized in Other liabilities) | 459) | 427) | 428) | 484) | 457) | |
| Total debt (including operating lease liability) | 39,011) | 38,452) | 37,572) | 38,431) | 37,783) | |
| Equity attributable to common shareholders | 19,491) | 19,494) | 15,869) | 16,484) | 15,331) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 2.00 | 1.97 | 2.37 | 2.33 | 2.46 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Eaton Corp. plc | 0.54 | 0.52 | 0.54 | 0.55 | 0.57 | |
| GE Aerospace | 1.05 | 0.84 | 0.96 | 0.94 | 2.20 | |
| Honeywell International Inc. | 1.73 | 1.36 | 1.23 | 1.11 | 1.32 | |
| Lockheed Martin Corp. | 3.38 | 2.73 | 1.81 | 1.19 | 2.21 | |
| RTX Corp. | 0.72 | 0.76 | 0.47 | 0.46 | 0.47 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 1.60 | 1.61 | 1.39 | 1.32 | 1.81 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.54 | 1.69 | 1.58 | 1.53 | 1.98 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity attributable to common shareholders
= 39,011 ÷ 19,491 = 2.00
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Caterpillar Inc. debt to equity ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Debt to Capital
Caterpillar Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,393) | 4,643) | 5,957) | 5,404) | 2,015) | |
| Long-term debt due within one year | 6,665) | 8,763) | 5,322) | 6,352) | 9,149) | |
| Long-term debt due after one year | 27,351) | 24,472) | 25,714) | 26,033) | 25,999) | |
| Total debt | 38,409) | 37,878) | 36,993) | 37,789) | 37,163) | |
| Equity attributable to common shareholders | 19,491) | 19,494) | 15,869) | 16,484) | 15,331) | |
| Total capital | 57,900) | 57,372) | 52,862) | 54,273) | 52,494) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.66 | 0.66 | 0.70 | 0.70 | 0.71 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Boeing Co. | 1.08 | 1.49 | 1.39 | 1.35 | 1.40 | |
| Eaton Corp. plc | 0.33 | 0.33 | 0.34 | 0.34 | 0.35 | |
| GE Aerospace | 0.50 | 0.43 | 0.47 | 0.47 | 0.68 | |
| Honeywell International Inc. | 0.63 | 0.56 | 0.54 | 0.51 | 0.56 | |
| Lockheed Martin Corp. | 0.76 | 0.72 | 0.63 | 0.52 | 0.67 | |
| RTX Corp. | 0.41 | 0.42 | 0.31 | 0.30 | 0.31 | |
| Debt to Capital, Sector | ||||||
| Capital Goods | 0.61 | 0.61 | 0.57 | 0.56 | 0.64 | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.58 | 0.60 | 0.59 | 0.58 | 0.64 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 38,409 ÷ 57,900 = 0.66
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Caterpillar Inc. debt to capital ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Debt to Capital (including Operating Lease Liability)
Caterpillar Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,393) | 4,643) | 5,957) | 5,404) | 2,015) | |
| Long-term debt due within one year | 6,665) | 8,763) | 5,322) | 6,352) | 9,149) | |
| Long-term debt due after one year | 27,351) | 24,472) | 25,714) | 26,033) | 25,999) | |
| Total debt | 38,409) | 37,878) | 36,993) | 37,789) | 37,163) | |
| Current operating lease liabilities (recognized in Other current liabilities) | 143) | 147) | 151) | 158) | 163) | |
| Noncurrent operating lease liabilities (recognized in Other liabilities) | 459) | 427) | 428) | 484) | 457) | |
| Total debt (including operating lease liability) | 39,011) | 38,452) | 37,572) | 38,431) | 37,783) | |
| Equity attributable to common shareholders | 19,491) | 19,494) | 15,869) | 16,484) | 15,331) | |
| Total capital (including operating lease liability) | 58,502) | 57,946) | 53,441) | 54,915) | 53,114) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.67 | 0.66 | 0.70 | 0.70 | 0.71 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 1.08 | 1.47 | 1.37 | 1.34 | 1.39 | |
| Eaton Corp. plc | 0.35 | 0.34 | 0.35 | 0.36 | 0.36 | |
| GE Aerospace | 0.51 | 0.46 | 0.49 | 0.49 | 0.69 | |
| Honeywell International Inc. | 0.63 | 0.58 | 0.55 | 0.53 | 0.57 | |
| Lockheed Martin Corp. | 0.77 | 0.73 | 0.64 | 0.54 | 0.69 | |
| RTX Corp. | 0.42 | 0.43 | 0.32 | 0.31 | 0.32 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.62 | 0.62 | 0.58 | 0.57 | 0.64 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.61 | 0.63 | 0.61 | 0.60 | 0.66 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 39,011 ÷ 58,502 = 0.67
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Caterpillar Inc. debt to capital ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Debt to Assets
Caterpillar Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,393) | 4,643) | 5,957) | 5,404) | 2,015) | |
| Long-term debt due within one year | 6,665) | 8,763) | 5,322) | 6,352) | 9,149) | |
| Long-term debt due after one year | 27,351) | 24,472) | 25,714) | 26,033) | 25,999) | |
| Total debt | 38,409) | 37,878) | 36,993) | 37,789) | 37,163) | |
| Total assets | 87,764) | 87,476) | 81,943) | 82,793) | 78,324) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.44 | 0.43 | 0.45 | 0.46 | 0.47 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Boeing Co. | 0.34 | 0.38 | 0.42 | 0.42 | 0.42 | |
| Eaton Corp. plc | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | |
| GE Aerospace | 0.16 | 0.13 | 0.17 | 0.18 | 0.30 | |
| Honeywell International Inc. | 0.41 | 0.33 | 0.31 | 0.30 | 0.35 | |
| Lockheed Martin Corp. | 0.36 | 0.33 | 0.29 | 0.23 | 0.24 | |
| RTX Corp. | 0.25 | 0.27 | 0.20 | 0.20 | 0.20 | |
| Debt to Assets, Sector | ||||||
| Capital Goods | 0.31 | 0.29 | 0.28 | 0.28 | 0.32 | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.31 | 0.31 | 0.31 | 0.30 | 0.33 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 38,409 ÷ 87,764 = 0.44
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Caterpillar Inc. debt to assets ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Debt to Assets (including Operating Lease Liability)
Caterpillar Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,393) | 4,643) | 5,957) | 5,404) | 2,015) | |
| Long-term debt due within one year | 6,665) | 8,763) | 5,322) | 6,352) | 9,149) | |
| Long-term debt due after one year | 27,351) | 24,472) | 25,714) | 26,033) | 25,999) | |
| Total debt | 38,409) | 37,878) | 36,993) | 37,789) | 37,163) | |
| Current operating lease liabilities (recognized in Other current liabilities) | 143) | 147) | 151) | 158) | 163) | |
| Noncurrent operating lease liabilities (recognized in Other liabilities) | 459) | 427) | 428) | 484) | 457) | |
| Total debt (including operating lease liability) | 39,011) | 38,452) | 37,572) | 38,431) | 37,783) | |
| Total assets | 87,764) | 87,476) | 81,943) | 82,793) | 78,324) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.44 | 0.44 | 0.46 | 0.46 | 0.48 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 0.36 | 0.40 | 0.43 | 0.43 | 0.43 | |
| Eaton Corp. plc | 0.26 | 0.26 | 0.26 | 0.27 | 0.27 | |
| GE Aerospace | 0.17 | 0.14 | 0.19 | 0.19 | 0.31 | |
| Honeywell International Inc. | 0.43 | 0.35 | 0.33 | 0.32 | 0.36 | |
| Lockheed Martin Corp. | 0.39 | 0.36 | 0.32 | 0.26 | 0.26 | |
| RTX Corp. | 0.27 | 0.28 | 0.21 | 0.21 | 0.21 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.32 | 0.30 | 0.30 | 0.29 | 0.33 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.35 | 0.35 | 0.34 | 0.34 | 0.36 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 39,011 ÷ 87,764 = 0.44
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Caterpillar Inc. debt to assets ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Financial Leverage
Caterpillar Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 87,764) | 87,476) | 81,943) | 82,793) | 78,324) | |
| Equity attributable to common shareholders | 19,491) | 19,494) | 15,869) | 16,484) | 15,331) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 4.50 | 4.49 | 5.16 | 5.02 | 5.11 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Eaton Corp. plc | 2.08 | 2.02 | 2.06 | 2.07 | 2.13 | |
| GE Aerospace | 6.37 | 5.96 | 5.16 | 4.93 | 7.13 | |
| Honeywell International Inc. | 4.04 | 3.88 | 3.73 | 3.47 | 3.68 | |
| Lockheed Martin Corp. | 8.78 | 7.67 | 5.71 | 4.64 | 8.43 | |
| RTX Corp. | 2.71 | 2.71 | 2.19 | 2.21 | 2.25 | |
| Financial Leverage, Sector | ||||||
| Capital Goods | 5.05 | 5.35 | 4.71 | 4.55 | 5.54 | |
| Financial Leverage, Industry | ||||||
| Industrials | 4.44 | 4.89 | 4.62 | 4.49 | 5.44 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Financial leverage = Total assets ÷ Equity attributable to common shareholders
= 87,764 ÷ 19,491 = 4.50
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Caterpillar Inc. financial leverage ratio decreased from 2022 to 2023 but then slightly increased from 2023 to 2024. |
Interest Coverage
Caterpillar Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Profit attributable to common stockholders | 10,792) | 10,335) | 6,705) | 6,489) | 2,998) | |
| Add: Net income attributable to noncontrolling interest | (4) | (3) | (1) | 4) | 5) | |
| Add: Income tax expense | 2,629) | 2,781) | 2,067) | 1,742) | 1,006) | |
| Add: Interest expense excluding Financial Products | 512) | 511) | 443) | 488) | 514) | |
| Earnings before interest and tax (EBIT) | 13,929) | 13,624) | 9,214) | 8,723) | 4,523) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 27.21 | 26.66 | 20.80 | 17.88 | 8.80 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Boeing Co. | -3.48 | 0.18 | -0.98 | -0.88 | -5.71 | |
| Eaton Corp. plc | 36.12 | 26.34 | 21.22 | 21.11 | 12.72 | |
| GE Aerospace | 8.73 | 10.12 | 1.88 | -0.96 | 2.59 | |
| Honeywell International Inc. | 7.82 | 10.36 | 16.41 | 22.09 | 17.75 | |
| Lockheed Martin Corp. | 7.00 | 9.84 | 11.72 | 14.27 | 14.93 | |
| RTX Corp. | 4.14 | 3.32 | 5.64 | 4.71 | -0.65 | |
| Interest Coverage, Sector | ||||||
| Capital Goods | 4.92 | 6.84 | 4.84 | 3.98 | 1.99 | |
| Interest Coverage, Industry | ||||||
| Industrials | 5.90 | 6.72 | 5.07 | 5.21 | 1.33 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= 13,929 ÷ 512 = 27.21
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Caterpillar Inc. interest coverage ratio improved from 2022 to 2023 and from 2023 to 2024. |
Fixed Charge Coverage
Caterpillar Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Profit attributable to common stockholders | 10,792) | 10,335) | 6,705) | 6,489) | 2,998) | |
| Add: Net income attributable to noncontrolling interest | (4) | (3) | (1) | 4) | 5) | |
| Add: Income tax expense | 2,629) | 2,781) | 2,067) | 1,742) | 1,006) | |
| Add: Interest expense excluding Financial Products | 512) | 511) | 443) | 488) | 514) | |
| Earnings before interest and tax (EBIT) | 13,929) | 13,624) | 9,214) | 8,723) | 4,523) | |
| Add: Operating lease cost | 185) | 189) | 187) | 214) | 204) | |
| Earnings before fixed charges and tax | 14,114) | 13,813) | 9,401) | 8,937) | 4,727) | |
| Interest expense excluding Financial Products | 512) | 511) | 443) | 488) | 514) | |
| Operating lease cost | 185) | 189) | 187) | 214) | 204) | |
| Fixed charges | 697) | 700) | 630) | 702) | 718) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 20.25 | 19.73 | 14.92 | 12.73 | 6.58 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Boeing Co. | -2.69 | 0.31 | -0.70 | -0.64 | -4.75 | |
| Eaton Corp. plc | 13.79 | 11.90 | 10.01 | 10.40 | 6.24 | |
| GE Aerospace | 6.19 | 5.25 | 1.35 | -0.22 | 1.93 | |
| Honeywell International Inc. | 6.44 | 8.13 | 11.00 | 13.67 | 11.49 | |
| Lockheed Martin Corp. | 5.80 | 7.81 | 8.44 | 9.95 | 11.12 | |
| RTX Corp. | 3.59 | 2.81 | 4.40 | 3.66 | -0.22 | |
| Fixed Charge Coverage, Sector | ||||||
| Capital Goods | 4.03 | 5.14 | 3.61 | 3.06 | 1.66 | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 4.02 | 4.37 | 3.35 | 3.49 | 1.17 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 14,114 ÷ 697 = 20.25
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Caterpillar Inc. fixed charge coverage ratio improved from 2022 to 2023 and from 2023 to 2024. |