Caterpillar Inc (CAT)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 64,809,000 | 65,664,000 | 66,368,000 | 66,997,000 | 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 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 12,287,000 | 12,124,000 | 11,973,000 | 12,028,000 | 7,810,000 | 11,744,000 | 11,932,000 | 8,172,000 | 7,957,000 | 12,014,000 | 12,132,000 | 12,401,000 | 12,232,000 | 12,357,000 | 12,488,000 |
| Fixed asset turnover | — | — | — | — | — | 5.42 | 5.34 | 5.15 | 4.94 | 7.25 | 4.60 | 4.41 | 6.24 | 6.08 | 3.82 | 3.54 | 3.37 | 3.57 | 3.77 | 4.08 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $64,809,000K ÷ $—K
= —
The fixed asset turnover ratio for Caterpillar Inc has shown fluctuations over the past few years, indicating changes in the efficiency of the company in generating revenue from its fixed assets.
In the first quarter of 2020, the fixed asset turnover ratio stood at 4.08, which means that Caterpillar generated $4.08 in sales for every dollar invested in fixed assets. This ratio decreased slightly to 3.77 in the second quarter of 2020 and further to 3.57 in the third quarter of the same year.
There was a slight recovery in the fourth quarter of 2020 as the ratio improved to 3.37. The trend continued to fluctuate in the following quarters, with the ratio reaching a peak of 7.25 in the third quarter of 2022, indicating a significant improvement in asset utilization efficiency.
However, in subsequent periods, the fixed asset turnover ratio declined to 4.94 in the fourth quarter of 2022, and then to 5.15 in the first quarter of 2023, and 5.34 in the second quarter of 2023. The ratio stabilized around 5.42 in the third quarter of 2023 and fourth quarter of 2023. As of the first quarter of 2024, the ratio was not available.
Overall, the analysis indicates that Caterpillar Inc has shown variable efficiency in utilizing its fixed assets to generate revenue, with fluctuations in the fixed asset turnover ratio over the period under review. It is essential for the company to monitor and manage its fixed asset turnover to ensure optimal utilization of assets and maximize profitability.
Peer comparison
Dec 31, 2024