Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Caterpillar Inc., long-term (investment) activity 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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Caterpillar Inc. net fixed asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Caterpillar Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Caterpillar Inc. total asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Caterpillar Inc. equity turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Net Fixed Asset Turnover
Caterpillar Inc., net fixed asset turnover 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) | ||||||
| Sales of Machinery, Energy & Transportation | 61,363) | 63,869) | 56,574) | 48,188) | 39,022) | |
| Property, plant and equipment, net | 13,361) | 12,680) | 12,028) | 12,090) | 12,401) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 4.59 | 5.04 | 4.70 | 3.99 | 3.15 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 5.83 | 7.30 | 6.31 | 5.70 | 4.92 | |
| Eaton Corp. plc | — | 6.57 | 6.59 | 6.41 | 6.02 | |
| GE Aerospace | 5.65 | 6.06 | 5.96 | 5.47 | 1.75 | |
| Honeywell International Inc. | 6.22 | 6.48 | 6.48 | 6.18 | 5.86 | |
| Lockheed Martin Corp. | 8.14 | 8.07 | 8.27 | 8.83 | 9.07 | |
| RTX Corp. | 5.02 | 4.38 | 4.42 | 4.30 | 3.78 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | — | 5.98 | 5.79 | 5.46 | 3.55 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | — | 2.88 | 2.95 | 2.73 | 2.19 | |
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
Net fixed asset turnover = Sales of Machinery, Energy & Transportation ÷ Property, plant and equipment, net
= 61,363 ÷ 13,361 = 4.59
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Caterpillar Inc. net fixed asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Caterpillar Inc., net fixed asset turnover (including operating lease, right-of-use asset) 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) | ||||||
| Sales of Machinery, Energy & Transportation | 61,363) | 63,869) | 56,574) | 48,188) | 39,022) | |
| Property, plant and equipment, net | 13,361) | 12,680) | 12,028) | 12,090) | 12,401) | |
| Operating lease right-of-use assets (recognized in Other assets) | 592) | 556) | 564) | 625) | 603) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 13,953) | 13,236) | 12,592) | 12,715) | 13,004) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 4.40 | 4.83 | 4.49 | 3.79 | 3.00 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | 4.97 | 6.30 | 5.55 | 5.04 | 4.45 | |
| Eaton Corp. plc | — | 5.55 | 5.58 | 5.60 | 5.26 | |
| GE Aerospace | 4.83 | 5.17 | 5.08 | 4.55 | 1.63 | |
| Honeywell International Inc. | 5.33 | 5.50 | 5.58 | 5.28 | 5.15 | |
| Lockheed Martin Corp. | 7.30 | 7.14 | 7.27 | 7.54 | 7.96 | |
| RTX Corp. | 4.50 | 3.96 | 3.95 | 3.80 | 3.36 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | — | 5.31 | 5.13 | 4.80 | 3.25 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | — | 2.50 | 2.56 | 2.36 | 1.93 | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Sales of Machinery, Energy & Transportation ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 61,363 ÷ 13,953 = 4.40
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Caterpillar Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Total Asset Turnover
Caterpillar Inc., total asset turnover 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) | ||||||
| Sales of Machinery, Energy & Transportation | 61,363) | 63,869) | 56,574) | 48,188) | 39,022) | |
| Total assets | 87,764) | 87,476) | 81,943) | 82,793) | 78,324) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.70 | 0.73 | 0.69 | 0.58 | 0.50 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 0.43 | 0.57 | 0.49 | 0.45 | 0.38 | |
| Eaton Corp. plc | — | 0.60 | 0.59 | 0.58 | 0.56 | |
| GE Aerospace | 0.29 | 0.40 | 0.39 | 0.36 | 0.29 | |
| Honeywell International Inc. | 0.51 | 0.60 | 0.57 | 0.53 | 0.51 | |
| Lockheed Martin Corp. | 1.28 | 1.29 | 1.25 | 1.32 | 1.29 | |
| RTX Corp. | 0.50 | 0.43 | 0.42 | 0.40 | 0.35 | |
| Total Asset Turnover, Sector | ||||||
| Capital Goods | — | 0.57 | 0.54 | 0.50 | 0.43 | |
| Total Asset Turnover, Industry | ||||||
| Industrials | — | 0.68 | 0.66 | 0.58 | 0.50 | |
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
Total asset turnover = Sales of Machinery, Energy & Transportation ÷ Total assets
= 61,363 ÷ 87,764 = 0.70
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Caterpillar Inc. total asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Equity Turnover
Caterpillar Inc., equity turnover 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) | ||||||
| Sales of Machinery, Energy & Transportation | 61,363) | 63,869) | 56,574) | 48,188) | 39,022) | |
| Equity attributable to common shareholders | 19,491) | 19,494) | 15,869) | 16,484) | 15,331) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 3.15 | 3.28 | 3.57 | 2.92 | 2.55 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Eaton Corp. plc | — | 1.22 | 1.22 | 1.20 | 1.20 | |
| GE Aerospace | 1.82 | 2.36 | 2.02 | 1.76 | 2.05 | |
| Honeywell International Inc. | 2.07 | 2.31 | 2.12 | 1.85 | 1.86 | |
| Lockheed Martin Corp. | 11.22 | 9.89 | 7.12 | 6.12 | 10.87 | |
| RTX Corp. | 1.34 | 1.15 | 0.92 | 0.88 | 0.78 | |
| Equity Turnover, Sector | ||||||
| Capital Goods | — | 3.07 | 2.54 | 2.28 | 2.39 | |
| Equity Turnover, Industry | ||||||
| Industrials | — | 3.31 | 3.05 | 2.62 | 2.74 | |
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
Equity turnover = Sales of Machinery, Energy & Transportation ÷ Equity attributable to common shareholders
= 61,363 ÷ 19,491 = 3.15
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Caterpillar Inc. equity turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |