Caterpillar Inc (CAT)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 13,072,000 | 12,966,000 | 7,904,000 | 6,878,000 | 4,553,000 |
| Total assets | US$ in thousands | 87,764,000 | 87,476,000 | 81,943,000 | 82,793,000 | 78,324,000 |
| Operating ROA | 14.89% | 14.82% | 9.65% | 8.31% | 5.81% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $13,072,000K ÷ $87,764,000K
= 14.89%
Caterpillar Inc's operating return on assets (operating ROA) has shown a positive trend over the last five years. Starting at 5.81% on December 31, 2020, the operating ROA increased steadily to reach 8.31% on December 31, 2021, further improving to 9.65% on December 31, 2022. The most notable growth was seen from December 31, 2022, to December 31, 2023, where the operating ROA jumped to 14.82%, and it continued to rise slightly to 14.89% by December 31, 2024.
This indicates that Caterpillar Inc has been effectively utilizing its assets to generate operating income, with a significant improvement in profitability over the period. The increasing trend in the operating ROA suggests that the company's operational efficiency and asset management have been on an upward trajectory, which is generally a positive sign for investors and stakeholders.
Peer comparison
Dec 31, 2024