Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Caterpillar Inc., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Caterpillar Inc. inventory turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Caterpillar Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Caterpillar Inc. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Caterpillar Inc. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Caterpillar Inc. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Caterpillar Inc. operating cycle improved from 2021 to 2022 and from 2022 to 2023. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Caterpillar Inc. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |
Inventory Turnover
Caterpillar Inc., inventory turnover 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) | ||||||
| Cost of goods sold | 42,767) | 41,350) | 35,513) | 29,082) | 36,630) | |
| Inventories | 16,565) | 16,270) | 14,038) | 11,402) | 11,266) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 2.58 | 2.54 | 2.53 | 2.55 | 3.25 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Boeing Co. | 0.88 | 0.81 | 0.75 | 0.78 | 0.94 | |
| Eaton Corp. plc | 3.95 | 4.04 | 4.48 | 5.88 | 5.11 | |
| GE Aerospace | 3.05 | 3.19 | 3.40 | 3.80 | 4.74 | |
| Honeywell International Inc. | 3.72 | 4.04 | 4.29 | 4.94 | 5.51 | |
| Lockheed Martin Corp. | 18.87 | 18.68 | 19.45 | 16.01 | 14.22 | |
| RTX Corp. | 4.83 | 5.03 | 5.65 | 5.11 | 5.21 | |
| Inventory Turnover, Sector | ||||||
| Capital Goods | 2.30 | 2.28 | 2.28 | 2.28 | 2.61 | |
| Inventory Turnover, Industry | ||||||
| Industrials | 3.89 | 3.99 | 3.87 | 3.61 | 3.94 | |
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
Inventory turnover = Cost of goods sold ÷ Inventories
= 42,767 ÷ 16,565 = 2.58
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Caterpillar Inc. inventory turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Receivables Turnover
Caterpillar Inc., receivables turnover 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) | ||||||
| Sales of Machinery, Energy & Transportation | 63,869) | 56,574) | 48,188) | 39,022) | 50,755) | |
| Receivables, trade and other | 9,310) | 8,856) | 8,477) | 7,317) | 8,568) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 6.86 | 6.39 | 5.68 | 5.33 | 5.92 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Boeing Co. | 29.37 | 26.46 | 23.58 | 29.75 | 23.44 | |
| Eaton Corp. plc | 5.18 | 5.09 | 5.95 | 6.15 | 6.22 | |
| GE Aerospace | 4.17 | 4.09 | 4.55 | 4.37 | 5.22 | |
| Honeywell International Inc. | 4.87 | 4.77 | 5.04 | 4.78 | 4.90 | |
| Lockheed Martin Corp. | 31.69 | 26.34 | 34.15 | 33.06 | 25.59 | |
| RTX Corp. | 6.36 | 7.36 | 6.66 | 6.11 | 5.70 | |
| Receivables Turnover, Sector | ||||||
| Capital Goods | 7.68 | 7.36 | 7.57 | 7.30 | 7.40 | |
| Receivables Turnover, Industry | ||||||
| Industrials | 8.14 | 7.80 | 7.60 | 7.49 | 7.67 | |
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
Receivables turnover = Sales of Machinery, Energy & Transportation ÷ Receivables, trade and other
= 63,869 ÷ 9,310 = 6.86
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Caterpillar Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Payables Turnover
Caterpillar Inc., payables turnover 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) | ||||||
| Cost of goods sold | 42,767) | 41,350) | 35,513) | 29,082) | 36,630) | |
| Accounts payable | 7,906) | 8,689) | 8,154) | 6,128) | 5,957) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 5.41 | 4.76 | 4.36 | 4.75 | 6.15 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Boeing Co. | 5.86 | 6.18 | 6.40 | 4.94 | 4.63 | |
| Eaton Corp. plc | 4.39 | 4.51 | 4.75 | 6.24 | 6.78 | |
| GE Aerospace | 3.27 | 2.98 | 3.32 | 3.67 | 4.20 | |
| Honeywell International Inc. | 3.36 | 3.53 | 3.40 | 3.86 | 4.25 | |
| Lockheed Martin Corp. | 25.56 | 27.25 | 74.34 | 64.48 | 40.16 | |
| RTX Corp. | 5.31 | 5.40 | 5.93 | 5.56 | 5.28 | |
| Payables Turnover, Sector | ||||||
| Capital Goods | 5.42 | 5.21 | 5.60 | 5.54 | 5.63 | |
| Payables Turnover, Industry | ||||||
| Industrials | 7.74 | 7.58 | 7.74 | 7.44 | 7.40 | |
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
Payables turnover = Cost of goods sold ÷ Accounts payable
= 42,767 ÷ 7,906 = 5.41
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Caterpillar Inc. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023. |
Working Capital Turnover
Caterpillar Inc., working capital turnover 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) | ||||||
| Current assets | 46,949) | 43,785) | 43,455) | 39,464) | 39,193) | |
| Less: Current liabilities | 34,728) | 31,531) | 29,847) | 25,717) | 26,621) | |
| Working capital | 12,221) | 12,254) | 13,608) | 13,747) | 12,572) | |
| Sales of Machinery, Energy & Transportation | 63,869) | 56,574) | 48,188) | 39,022) | 50,755) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 5.23 | 4.62 | 3.54 | 2.84 | 4.04 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Boeing Co. | 5.78 | 3.42 | 2.34 | 1.69 | 15.57 | |
| Eaton Corp. plc | 5.91 | 8.70 | 65.65 | 5.42 | 5.95 | |
| GE Aerospace | 7.24 | 7.93 | 4.94 | 2.26 | 7.03 | |
| Honeywell International Inc. | 7.39 | 7.03 | 5.86 | 3.64 | 5.92 | |
| Lockheed Martin Corp. | 18.85 | 12.93 | 11.52 | 12.01 | 19.15 | |
| RTX Corp. | 41.62 | 20.15 | 9.75 | 7.52 | 26.47 | |
| Working Capital Turnover, Sector | ||||||
| Capital Goods | 8.26 | 6.79 | 5.01 | 3.24 | 8.95 | |
| Working Capital Turnover, Industry | ||||||
| Industrials | 11.44 | 9.67 | 6.90 | 4.47 | 10.00 | |
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
Working capital turnover = Sales of Machinery, Energy & Transportation ÷ Working capital
= 63,869 ÷ 12,221 = 5.23
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Caterpillar Inc. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Average Inventory Processing Period
Caterpillar Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 2.58 | 2.54 | 2.53 | 2.55 | 3.25 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 141 | 144 | 144 | 143 | 112 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Boeing Co. | 415 | 452 | 486 | 467 | 388 | |
| Eaton Corp. plc | 92 | 90 | 82 | 62 | 71 | |
| GE Aerospace | 120 | 114 | 107 | 96 | 77 | |
| Honeywell International Inc. | 98 | 90 | 85 | 74 | 66 | |
| Lockheed Martin Corp. | 19 | 20 | 19 | 23 | 26 | |
| RTX Corp. | 76 | 73 | 65 | 71 | 70 | |
| Average Inventory Processing Period, Sector | ||||||
| Capital Goods | 159 | 160 | 160 | 160 | 140 | |
| Average Inventory Processing Period, Industry | ||||||
| Industrials | 94 | 91 | 94 | 101 | 93 | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.58 = 141
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. |
Average Receivable Collection Period
Caterpillar Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 6.86 | 6.39 | 5.68 | 5.33 | 5.92 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 53 | 57 | 64 | 68 | 62 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Boeing Co. | 12 | 14 | 15 | 12 | 16 | |
| Eaton Corp. plc | 70 | 72 | 61 | 59 | 59 | |
| GE Aerospace | 87 | 89 | 80 | 83 | 70 | |
| Honeywell International Inc. | 75 | 77 | 72 | 76 | 75 | |
| Lockheed Martin Corp. | 12 | 14 | 11 | 11 | 14 | |
| RTX Corp. | 57 | 50 | 55 | 60 | 64 | |
| Average Receivable Collection Period, Sector | ||||||
| Capital Goods | 48 | 50 | 48 | 50 | 49 | |
| Average Receivable Collection Period, Industry | ||||||
| Industrials | 45 | 47 | 48 | 49 | 48 | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.86 = 53
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Caterpillar Inc. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
Operating Cycle
Caterpillar Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 141 | 144 | 144 | 143 | 112 | |
| Average receivable collection period | 53 | 57 | 64 | 68 | 62 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 194 | 201 | 208 | 211 | 174 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Boeing Co. | 427 | 466 | 501 | 479 | 404 | |
| Eaton Corp. plc | 162 | 162 | 143 | 121 | 130 | |
| GE Aerospace | 207 | 203 | 187 | 179 | 147 | |
| Honeywell International Inc. | 173 | 167 | 157 | 150 | 141 | |
| Lockheed Martin Corp. | 31 | 34 | 30 | 34 | 40 | |
| RTX Corp. | 133 | 123 | 120 | 131 | 134 | |
| Operating Cycle, Sector | ||||||
| Capital Goods | 207 | 210 | 208 | 210 | 189 | |
| Operating Cycle, Industry | ||||||
| Industrials | 139 | 138 | 142 | 150 | 141 | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 141 + 53 = 194
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Caterpillar Inc. operating cycle improved from 2021 to 2022 and from 2022 to 2023. |
Average Payables Payment Period
Caterpillar Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 5.41 | 4.76 | 4.36 | 4.75 | 6.15 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 67 | 77 | 84 | 77 | 59 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Boeing Co. | 62 | 59 | 57 | 74 | 79 | |
| Eaton Corp. plc | 83 | 81 | 77 | 58 | 54 | |
| GE Aerospace | 112 | 123 | 110 | 100 | 87 | |
| Honeywell International Inc. | 109 | 103 | 107 | 95 | 86 | |
| Lockheed Martin Corp. | 14 | 13 | 5 | 6 | 9 | |
| RTX Corp. | 69 | 68 | 62 | 66 | 69 | |
| Average Payables Payment Period, Sector | ||||||
| Capital Goods | 67 | 70 | 65 | 66 | 65 | |
| Average Payables Payment Period, Industry | ||||||
| Industrials | 47 | 48 | 47 | 49 | 49 | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.41 = 67
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Caterpillar Inc. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023. |
Cash Conversion Cycle
Caterpillar Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 141 | 144 | 144 | 143 | 112 | |
| Average receivable collection period | 53 | 57 | 64 | 68 | 62 | |
| Average payables payment period | 67 | 77 | 84 | 77 | 59 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 127 | 124 | 124 | 134 | 115 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Boeing Co. | 365 | 407 | 444 | 405 | 325 | |
| Eaton Corp. plc | 79 | 81 | 66 | 63 | 76 | |
| GE Aerospace | 95 | 80 | 77 | 79 | 60 | |
| Honeywell International Inc. | 64 | 64 | 50 | 55 | 55 | |
| Lockheed Martin Corp. | 17 | 21 | 25 | 28 | 31 | |
| RTX Corp. | 64 | 55 | 58 | 65 | 65 | |
| Cash Conversion Cycle, Sector | ||||||
| Capital Goods | 140 | 140 | 143 | 144 | 124 | |
| Cash Conversion Cycle, Industry | ||||||
| Industrials | 92 | 90 | 95 | 101 | 92 | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 141 + 53 – 67 = 127
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |