Caterpillar Inc (CAT)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 10,792,000 | 10,335,000 | 6,705,000 | 6,489,000 | 2,998,000 |
| Revenue | US$ in thousands | 64,809,000 | 67,060,000 | 59,427,000 | 50,971,000 | 41,748,000 |
| Net profit margin | 16.65% | 15.41% | 11.28% | 12.73% | 7.18% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $10,792,000K ÷ $64,809,000K
= 16.65%
Caterpillar Inc's net profit margin has exhibited a positive trend over the past five years, indicating an improvement in profitability. The net profit margin increased from 7.18% as of December 31, 2020, to 16.65% as of December 31, 2024. This signifies the company's ability to efficiently convert revenue into profits after accounting for all expenses. The significant rise in net profit margin from 2020 to 2024 demonstrates enhanced cost management, operational efficiency, and potentially increased sales or higher pricing power. Investors and stakeholders may view this upward trajectory positively, as it suggests improved financial performance and potential for sustained profitability in the future.
Peer comparison
Dec 31, 2024