Caterpillar Inc (CAT)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 67,060,000 | 66,587,000 | 64,771,000 | 61,700,000 | 59,427,000 | 56,628,000 | 54,031,000 | 52,673,000 | 50,971,000 | 48,408,000 | 45,892,000 | 43,000,000 | 41,748,000 | 43,657,000 | 46,534,000 | 50,969,000 | 53,800,000 | 54,998,000 | 55,750,000 | 55,329,000 |
| Property, plant and equipment | US$ in thousands | 12,680,000 | 12,287,000 | 12,124,000 | 11,973,000 | 12,028,000 | 11,643,000 | 11,744,000 | 11,932,000 | 12,090,000 | 11,904,000 | 12,014,000 | 12,132,000 | 12,401,000 | 12,232,000 | 12,357,000 | 12,488,000 | 12,904,000 | 12,842,000 | 13,172,000 | 13,259,000 |
| Fixed asset turnover | 5.29 | 5.42 | 5.34 | 5.15 | 4.94 | 4.86 | 4.60 | 4.41 | 4.22 | 4.07 | 3.82 | 3.54 | 3.37 | 3.57 | 3.77 | 4.08 | 4.17 | 4.28 | 4.23 | 4.17 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $67,060,000K ÷ $12,680,000K
= 5.29
Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. It is calculated by dividing net sales by average fixed assets.
Based on the data provided for Caterpillar Inc., we can see a trend of increasing fixed asset turnover over the past eight quarters, indicating that the company has been improving its efficiency in generating sales from its fixed assets. The ratio has consistently been above 4.0, which generally signifies efficient utilization of fixed assets.
In the most recent quarter, Q4 2023, the fixed asset turnover was 5.29, slightly lower than the previous quarter but still maintaining a healthy level. This suggests that Caterpillar Inc. continues to effectively leverage its fixed assets to drive revenue.
Overall, the upward trend in fixed asset turnover for Caterpillar Inc. is a positive indication of the company's operational efficiency and effective management of its fixed assets to support revenue generation.
Peer comparison
Dec 31, 2023