Caterpillar Inc (CAT)
Pretax margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 13,116,000 | 11,951,000 | 10,991,000 | 9,417,000 | 8,772,000 | 9,223,000 | 8,449,000 | 8,232,000 | 8,231,000 | 8,635,000 | 7,696,000 | 6,498,000 | 6,010,000 | 6,602,000 | 7,759,000 | 9,259,000 | 10,010,000 | 10,429,000 | 10,559,000 | 10,571,000 |
| Revenue (ttm) | US$ in thousands | 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 | 53,800,000 | 54,998,000 | 55,750,000 | 55,329,000 |
| Pretax margin | 19.56% | 17.95% | 16.97% | 15.26% | 14.76% | 16.29% | 15.64% | 15.63% | 16.15% | 17.84% | 16.77% | 15.11% | 14.40% | 15.12% | 16.67% | 18.17% | 18.61% | 18.96% | 18.94% | 19.11% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $13,116,000K ÷ $67,060,000K
= 19.56%
Analyzing Caterpillar Inc.'s pretax margin over the past eight quarters reveals a generally positive trend. The company has shown a consistent improvement in its pretax margin, starting at 14.76% in Q4 2022 and reaching 19.55% in Q4 2023. This indicates that Caterpillar has been effectively managing its operating expenses and generating stronger profits in relation to its revenue during this period.
The upward trend in pretax margin suggests that Caterpillar has been successful in controlling its costs and increasing its operational efficiency, which in turn has led to enhanced profitability. The company's ability to consistently improve its pretax margin is a positive sign for investors and stakeholders, indicating a healthy financial performance and effective management of its business operations.
Overall, Caterpillar Inc.'s pretax margin analysis demonstrates a positive trajectory, reflecting the company's efforts to optimize its profitability and strengthen its financial position over the past two years.
Peer comparison
Dec 31, 2023