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: 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).
| 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| 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) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Caterpillar Inc. debt to capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| 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) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Caterpillar Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
| 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 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Caterpillar Inc. financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
| 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 2021 to 2022 and from 2022 to 2023. |
| 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 2021 to 2022 and from 2022 to 2023. |
Debt to Equity
Caterpillar Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,643) | 5,957) | 5,404) | 2,015) | 5,166) | |
| Long-term debt due within one year | 8,763) | 5,322) | 6,352) | 9,149) | 6,210) | |
| Long-term debt due after one year | 24,472) | 25,714) | 26,033) | 25,999) | 26,281) | |
| 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 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Eaton Corp. plc | 0.49 | 0.51 | 0.52 | 0.54 | 0.52 | |
| GE Aerospace | 0.77 | 0.89 | 0.87 | 2.11 | 3.21 | |
| Honeywell International Inc. | 1.29 | 1.17 | 1.06 | 1.28 | 0.87 | |
| Lockheed Martin Corp. | 2.55 | 1.68 | 1.07 | 2.02 | 4.05 | |
| RTX Corp. | 0.73 | 0.44 | 0.43 | 0.44 | 1.04 | |
| Debt to Equity, Sector | ||||||
| Capital Goods | 1.54 | 1.33 | 1.26 | 1.75 | 2.08 | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.43 | 1.32 | 1.25 | 1.73 | 1.86 | |
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 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Equity (including Operating Lease Liability)
Caterpillar Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,643) | 5,957) | 5,404) | 2,015) | 5,166) | |
| Long-term debt due within one year | 8,763) | 5,322) | 6,352) | 9,149) | 6,210) | |
| Long-term debt due after one year | 24,472) | 25,714) | 26,033) | 25,999) | 26,281) | |
| Total debt | 37,878) | 36,993) | 37,789) | 37,163) | 37,657) | |
| Current operating lease liabilities (recognized in Other current liabilities) | 147) | 151) | 158) | 163) | 173) | |
| Noncurrent operating lease liabilities (recognized in Other liabilities) | 427) | 428) | 484) | 457) | 461) | |
| Total debt (including operating lease liability) | 38,452) | 37,572) | 38,431) | 37,783) | 38,291) | |
| Equity attributable to common shareholders | 19,494) | 15,869) | 16,484) | 15,331) | 14,588) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.97 | 2.37 | 2.33 | 2.46 | 2.62 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Eaton Corp. plc | 0.52 | 0.54 | 0.55 | 0.57 | 0.55 | |
| GE Aerospace | 0.84 | 0.96 | 0.94 | 2.20 | 3.32 | |
| Honeywell International Inc. | 1.36 | 1.23 | 1.11 | 1.32 | 0.90 | |
| Lockheed Martin Corp. | 2.73 | 1.81 | 1.19 | 2.21 | 4.40 | |
| RTX Corp. | 0.76 | 0.47 | 0.46 | 0.47 | 1.11 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 1.61 | 1.39 | 1.32 | 1.81 | 2.17 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.61 | 1.47 | 1.39 | 1.89 | 1.96 | |
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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity attributable to common shareholders
= 38,452 ÷ 19,494 = 1.97
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) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Capital
Caterpillar Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,643) | 5,957) | 5,404) | 2,015) | 5,166) | |
| Long-term debt due within one year | 8,763) | 5,322) | 6,352) | 9,149) | 6,210) | |
| Long-term debt due after one year | 24,472) | 25,714) | 26,033) | 25,999) | 26,281) | |
| 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) | |
| 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 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Boeing Co. | 1.49 | 1.39 | 1.35 | 1.40 | 1.46 | |
| Eaton Corp. plc | 0.33 | 0.34 | 0.34 | 0.35 | 0.34 | |
| GE Aerospace | 0.43 | 0.47 | 0.47 | 0.68 | 0.76 | |
| Honeywell International Inc. | 0.56 | 0.54 | 0.51 | 0.56 | 0.46 | |
| Lockheed Martin Corp. | 0.72 | 0.63 | 0.52 | 0.67 | 0.80 | |
| RTX Corp. | 0.42 | 0.31 | 0.30 | 0.31 | 0.51 | |
| Debt to Capital, Sector | ||||||
| Capital Goods | 0.61 | 0.57 | 0.56 | 0.64 | 0.68 | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.59 | 0.57 | 0.56 | 0.63 | 0.65 | |
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 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Capital (including Operating Lease Liability)
Caterpillar Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,643) | 5,957) | 5,404) | 2,015) | 5,166) | |
| Long-term debt due within one year | 8,763) | 5,322) | 6,352) | 9,149) | 6,210) | |
| Long-term debt due after one year | 24,472) | 25,714) | 26,033) | 25,999) | 26,281) | |
| Total debt | 37,878) | 36,993) | 37,789) | 37,163) | 37,657) | |
| Current operating lease liabilities (recognized in Other current liabilities) | 147) | 151) | 158) | 163) | 173) | |
| Noncurrent operating lease liabilities (recognized in Other liabilities) | 427) | 428) | 484) | 457) | 461) | |
| Total debt (including operating lease liability) | 38,452) | 37,572) | 38,431) | 37,783) | 38,291) | |
| Equity attributable to common shareholders | 19,494) | 15,869) | 16,484) | 15,331) | 14,588) | |
| Total capital (including operating lease liability) | 57,946) | 53,441) | 54,915) | 53,114) | 52,879) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.66 | 0.70 | 0.70 | 0.71 | 0.72 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 1.47 | 1.37 | 1.34 | 1.39 | 1.43 | |
| Eaton Corp. plc | 0.34 | 0.35 | 0.36 | 0.36 | 0.35 | |
| GE Aerospace | 0.46 | 0.49 | 0.49 | 0.69 | 0.77 | |
| Honeywell International Inc. | 0.58 | 0.55 | 0.53 | 0.57 | 0.47 | |
| Lockheed Martin Corp. | 0.73 | 0.64 | 0.54 | 0.69 | 0.81 | |
| RTX Corp. | 0.43 | 0.32 | 0.31 | 0.32 | 0.53 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.62 | 0.58 | 0.57 | 0.64 | 0.68 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.62 | 0.60 | 0.58 | 0.65 | 0.66 | |
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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 38,452 ÷ 57,946 = 0.66
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) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Assets
Caterpillar Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,643) | 5,957) | 5,404) | 2,015) | 5,166) | |
| Long-term debt due within one year | 8,763) | 5,322) | 6,352) | 9,149) | 6,210) | |
| Long-term debt due after one year | 24,472) | 25,714) | 26,033) | 25,999) | 26,281) | |
| Total debt | 37,878) | 36,993) | 37,789) | 37,163) | 37,657) | |
| Total assets | 87,476) | 81,943) | 82,793) | 78,324) | 78,453) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.43 | 0.45 | 0.46 | 0.47 | 0.48 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Boeing Co. | 0.38 | 0.42 | 0.42 | 0.42 | 0.20 | |
| Eaton Corp. plc | 0.24 | 0.25 | 0.25 | 0.25 | 0.25 | |
| GE Aerospace | 0.13 | 0.17 | 0.18 | 0.30 | 0.34 | |
| Honeywell International Inc. | 0.33 | 0.31 | 0.30 | 0.35 | 0.27 | |
| Lockheed Martin Corp. | 0.33 | 0.29 | 0.23 | 0.24 | 0.27 | |
| RTX Corp. | 0.27 | 0.20 | 0.20 | 0.20 | 0.31 | |
| Debt to Assets, Sector | ||||||
| Capital Goods | 0.29 | 0.28 | 0.28 | 0.32 | 0.31 | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.30 | 0.29 | 0.29 | 0.32 | 0.32 | |
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 assets = Total debt ÷ Total assets
= 37,878 ÷ 87,476 = 0.43
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 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Caterpillar Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,643) | 5,957) | 5,404) | 2,015) | 5,166) | |
| Long-term debt due within one year | 8,763) | 5,322) | 6,352) | 9,149) | 6,210) | |
| Long-term debt due after one year | 24,472) | 25,714) | 26,033) | 25,999) | 26,281) | |
| Total debt | 37,878) | 36,993) | 37,789) | 37,163) | 37,657) | |
| Current operating lease liabilities (recognized in Other current liabilities) | 147) | 151) | 158) | 163) | 173) | |
| Noncurrent operating lease liabilities (recognized in Other liabilities) | 427) | 428) | 484) | 457) | 461) | |
| Total debt (including operating lease liability) | 38,452) | 37,572) | 38,431) | 37,783) | 38,291) | |
| Total assets | 87,476) | 81,943) | 82,793) | 78,324) | 78,453) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.44 | 0.46 | 0.46 | 0.48 | 0.49 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 0.40 | 0.43 | 0.43 | 0.43 | 0.21 | |
| Eaton Corp. plc | 0.26 | 0.26 | 0.27 | 0.27 | 0.27 | |
| GE Aerospace | 0.14 | 0.19 | 0.19 | 0.31 | 0.35 | |
| Honeywell International Inc. | 0.35 | 0.33 | 0.32 | 0.36 | 0.28 | |
| Lockheed Martin Corp. | 0.36 | 0.32 | 0.26 | 0.26 | 0.29 | |
| RTX Corp. | 0.28 | 0.21 | 0.21 | 0.21 | 0.33 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.30 | 0.30 | 0.29 | 0.33 | 0.33 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.33 | 0.33 | 0.32 | 0.35 | 0.34 | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 38,452 ÷ 87,476 = 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 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Caterpillar Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Eaton Corp. plc | 2.02 | 2.06 | 2.07 | 2.13 | 2.04 | |
| GE Aerospace | 5.96 | 5.16 | 4.93 | 7.13 | 9.40 | |
| Honeywell International Inc. | 3.88 | 3.73 | 3.47 | 3.68 | 3.17 | |
| Lockheed Martin Corp. | 7.67 | 5.71 | 4.64 | 8.43 | 15.20 | |
| RTX Corp. | 2.71 | 2.19 | 2.21 | 2.25 | 3.34 | |
| Financial Leverage, Sector | ||||||
| Capital Goods | 5.35 | 4.71 | 4.55 | 5.54 | 6.65 | |
| Financial Leverage, Industry | ||||||
| Industrials | 4.81 | 4.49 | 4.33 | 5.35 | 5.76 | |
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 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 increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Interest Coverage
Caterpillar Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Profit attributable to common stockholders | 10,335) | 6,705) | 6,489) | 2,998) | 6,093) | |
| Add: Net income attributable to noncontrolling interest | (3) | (1) | 4) | 5) | 1) | |
| Add: Income tax expense | 2,781) | 2,067) | 1,742) | 1,006) | 1,746) | |
| Add: Interest expense excluding Financial Products | 511) | 443) | 488) | 514) | 421) | |
| Earnings before interest and tax (EBIT) | 13,624) | 9,214) | 8,723) | 4,523) | 8,261) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 26.66 | 20.80 | 17.88 | 8.80 | 19.62 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Boeing Co. | 0.18 | -0.98 | -0.88 | -5.71 | -2.19 | |
| Eaton Corp. plc | 26.34 | 21.22 | 21.11 | 12.72 | 11.98 | |
| GE Aerospace | 10.12 | 1.88 | -0.96 | 2.59 | 1.27 | |
| Honeywell International Inc. | 10.36 | 16.41 | 22.09 | 17.75 | 22.17 | |
| Lockheed Martin Corp. | 9.84 | 11.72 | 14.27 | 14.93 | 12.09 | |
| RTX Corp. | 3.32 | 5.64 | 4.71 | -0.65 | 5.65 | |
| Interest Coverage, Sector | ||||||
| Capital Goods | 6.84 | 4.84 | 3.98 | 1.99 | 4.85 | |
| Interest Coverage, Industry | ||||||
| Industrials | 7.24 | 5.53 | 6.00 | 2.04 | 4.37 | |
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
Interest coverage = EBIT ÷ Interest expense
= 13,624 ÷ 511 = 26.66
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 2021 to 2022 and from 2022 to 2023. |
Fixed Charge Coverage
Caterpillar Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Profit attributable to common stockholders | 10,335) | 6,705) | 6,489) | 2,998) | 6,093) | |
| Add: Net income attributable to noncontrolling interest | (3) | (1) | 4) | 5) | 1) | |
| Add: Income tax expense | 2,781) | 2,067) | 1,742) | 1,006) | 1,746) | |
| Add: Interest expense excluding Financial Products | 511) | 443) | 488) | 514) | 421) | |
| Earnings before interest and tax (EBIT) | 13,624) | 9,214) | 8,723) | 4,523) | 8,261) | |
| Add: Operating lease cost | 189) | 187) | 214) | 204) | 232) | |
| Earnings before fixed charges and tax | 13,813) | 9,401) | 8,937) | 4,727) | 8,493) | |
| Interest expense excluding Financial Products | 511) | 443) | 488) | 514) | 421) | |
| Operating lease cost | 189) | 187) | 214) | 204) | 232) | |
| Fixed charges | 700) | 630) | 702) | 718) | 653) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 19.73 | 14.92 | 12.73 | 6.58 | 13.01 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Boeing Co. | 0.31 | -0.70 | -0.64 | -4.75 | -1.19 | |
| Eaton Corp. plc | 11.90 | 10.01 | 10.40 | 6.24 | 7.45 | |
| GE Aerospace | 5.25 | 1.35 | -0.22 | 1.93 | 1.09 | |
| Honeywell International Inc. | 8.13 | 11.00 | 13.67 | 11.49 | 14.06 | |
| Lockheed Martin Corp. | 7.81 | 8.44 | 9.95 | 11.12 | 9.12 | |
| RTX Corp. | 2.81 | 4.40 | 3.66 | -0.22 | 4.31 | |
| Fixed Charge Coverage, Sector | ||||||
| Capital Goods | 5.14 | 3.61 | 3.06 | 1.66 | 3.63 | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 4.62 | 3.58 | 3.93 | 1.59 | 2.96 | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 13,813 ÷ 700 = 19.73
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 2021 to 2022 and from 2022 to 2023. |