Caterpillar Inc (CAT)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 67,060,000 | 59,427,000 | 50,971,000 | 41,748,000 | 53,800,000 |
| Total assets | US$ in thousands | 87,476,000 | 81,943,000 | 82,793,000 | 78,324,000 | 78,453,000 |
| Total asset turnover | 0.77 | 0.73 | 0.62 | 0.53 | 0.69 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $67,060,000K ÷ $87,476,000K
= 0.77
Total asset turnover is a key financial ratio that measures a company's efficiency in generating sales revenue from its total assets. In the case of Caterpillar Inc., the trend in total asset turnover over the past five years shows fluctuation.
In 2023, the total asset turnover ratio was 0.77, indicating that Caterpillar generated $0.77 in sales for every $1 of total assets. This represents an improvement from the previous year where the ratio was 0.73. The increase in total asset turnover suggests that Caterpillar was more efficient in utilizing its assets to generate sales in 2023 compared to 2022.
Looking back further, in 2021, the total asset turnover ratio was 0.62, which was lower compared to 2023. This indicates that Caterpillar's efficiency in converting its assets into sales was weaker in 2021. The ratio further decreased to 0.53 in 2020, reflecting a significant decline in asset utilization efficiency.
However, in 2019, Caterpillar's total asset turnover improved to 0.69, showing better asset utilization compared to 2021 and 2020. Overall, the fluctuation in total asset turnover for Caterpillar Inc. suggests varying levels of efficiency in utilizing assets to generate sales over the past five years, with improvements in recent years.
Peer comparison
Dec 31, 2023