Caterpillar Inc (CAT)
Total 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 |
| Total assets | US$ in thousands | 87,476,000 | 86,791,000 | 85,427,000 | 83,649,000 | 81,943,000 | 80,907,000 | 81,107,000 | 82,276,000 | 82,793,000 | 80,784,000 | 81,697,000 | 80,729,000 | 78,324,000 | 76,741,000 | 76,566,000 | 75,894,000 | 78,453,000 | 77,993,000 | 79,187,000 | 78,726,000 |
| Total asset turnover | 0.77 | 0.77 | 0.76 | 0.74 | 0.73 | 0.70 | 0.67 | 0.64 | 0.62 | 0.60 | 0.56 | 0.53 | 0.53 | 0.57 | 0.61 | 0.67 | 0.69 | 0.71 | 0.70 | 0.70 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $67,060,000K ÷ $87,476,000K
= 0.77
Caterpillar Inc.'s total asset turnover has shown a consistent and positive trend over the past eight quarters, reflecting the company's efficiency in generating sales revenue relative to its total assets. The gradual increase in the total asset turnover ratio from 0.64 in Q1 2022 to 0.77 in Q4 2023 indicates improved asset utilization and effectiveness in utilizing its resources to drive revenue generation.
The ratio of 0.77 in Q4 2023 suggests that for every dollar of assets the company holds, it generates $0.77 in sales, which demonstrates a healthy level of efficiency in utilizing its assets to drive revenue growth. This improvement over the quarters indicates that Caterpillar Inc. has been successful in optimizing its asset base to generate more revenue, potentially through effective operational management and asset utilization strategies.
Overall, the upward trend in total asset turnover indicates that Caterpillar Inc. has been effectively managing its assets to drive sales growth, which is a positive sign for investors and stakeholders.
Peer comparison
Dec 31, 2023