Caterpillar Inc (CAT)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 13,116,000 | 8,772,000 | 8,231,000 | 4,004,000 | 7,839,000 |
| Revenue | US$ in thousands | 67,060,000 | 59,427,000 | 50,971,000 | 41,748,000 | 53,800,000 |
| Pretax margin | 19.56% | 14.76% | 16.15% | 9.59% | 14.57% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $13,116,000K ÷ $67,060,000K
= 19.56%
The pretax margin of Caterpillar Inc. has displayed fluctuations over the past five years, ranging from 9.60% in 2020 to 19.55% in 2023. The upward trend in the pretax margin from 2020 to 2023 indicates an improvement in the company's ability to generate profits before accounting for taxes. The pretax margin is a key profitability metric that reflects the company's efficiency in managing costs and generating revenue. The substantial increase in pretax margin in 2023 compared to the previous years suggests potential enhancements in operational efficiency and cost management practices within the company. Overall, the increasing trend in Caterpillar Inc.'s pretax margin from 2020 to 2023 is a positive indication of the company's profitability and operational performance.
Peer comparison
Dec 31, 2023