Caterpillar Inc (CAT)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 64,809,000 | 67,060,000 | 59,427,000 | 50,971,000 | 41,748,000 |
| Total current assets | US$ in thousands | 45,682,000 | 46,949,000 | 43,785,000 | 43,455,000 | 39,464,000 |
| Total current liabilities | US$ in thousands | 32,272,000 | 34,728,000 | 31,531,000 | 29,847,000 | 25,717,000 |
| Working capital turnover | 4.83 | 5.49 | 4.85 | 3.75 | 3.04 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $64,809,000K ÷ ($45,682,000K – $32,272,000K)
= 4.83
The working capital turnover of Caterpillar Inc has been showing a positive trend over the past five years. The ratio has increased steadily from 3.04 in December 31, 2020, to 4.83 in December 31, 2024. This indicates that the company is efficiently managing its working capital to generate sales revenue. A higher working capital turnover ratio signifies that Caterpillar Inc is effectively utilizing its current assets to support its operations and sales activities. Overall, the improving trend in the working capital turnover reflects positively on Caterpillar Inc's operational efficiency and financial management.
Peer comparison
Dec 31, 2024