Caterpillar Inc (CAT)
Working capital 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 |
| Total current assets | US$ in thousands | 45,682,000 | 44,946,000 | 43,096,000 | 43,664,000 | 46,949,000 | 48,005,000 | 47,000,000 | 45,660,000 | 43,785,000 | 42,577,000 | 41,982,000 | 42,570,000 | 43,455,000 | 41,893,000 | 42,946,000 | 42,581,000 | 39,464,000 | 38,534,000 | 37,862,000 | 37,586,000 |
| Total current liabilities | US$ in thousands | 32,272,000 | 32,218,000 | 33,564,000 | 32,371,000 | 34,728,000 | 33,124,000 | 35,314,000 | 31,842,000 | 31,531,000 | 30,202,000 | 28,963,000 | 29,532,000 | 29,847,000 | 25,976,000 | 27,508,000 | 26,578,000 | 25,717,000 | 24,978,000 | 25,231,000 | 26,516,000 |
| Working capital turnover | 4.83 | 5.16 | 6.96 | 5.93 | 5.49 | 4.47 | 5.54 | 4.47 | 4.85 | 4.58 | 4.15 | 4.04 | 3.75 | 3.04 | 2.97 | 2.69 | 3.04 | 3.22 | 3.68 | 4.60 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (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 shown fluctuating trends over the given period. A higher working capital turnover ratio indicates that the company is effectively utilizing its working capital to generate sales revenue.
Caterpillar Inc started with a working capital turnover of 4.60 on March 31, 2020, gradually decreasing to 2.69 by March 31, 2021. This signifies a potential decrease in the efficiency of the company in managing its working capital to support sales activities.
However, there was a slight recovery as the working capital turnover improved to 3.75 by December 31, 2021. From thereon, the ratio showed a positive trend, reaching its peak of 6.96 by June 30, 2024. This implies that Caterpillar Inc enhanced its ability to convert working capital into sales during this period.
Overall, Caterpillar Inc has demonstrated variations in its working capital turnover, indicating fluctuations in its efficiency in utilizing working capital to support sales activities. It is essential for the company to maintain an optimal level of working capital turnover to ensure smooth operations and sustainable growth.
Peer comparison
Dec 31, 2024