Caterpillar Inc (CAT)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 36.23% | 34.87% | 33.64% | 32.10% | 30.42% | 29.82% | 29.38% | 29.64% | 30.33% | 29.85% | 28.28% | 25.97% | 23.81% | 23.87% | 24.75% | 25.61% | 26.25% | 26.36% | 26.61% | 27.04% |
| Operating profit margin | 19.33% | 17.29% | 16.19% | 14.23% | 13.30% | 13.84% | 13.09% | 13.14% | 13.49% | 13.73% | 13.00% | 11.54% | 10.91% | 11.51% | 13.02% | 14.69% | 15.41% | 15.13% | 15.14% | 15.17% |
| 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% |
| Net profit margin | 15.41% | 13.69% | 12.91% | 11.53% | 11.28% | 13.02% | 12.50% | 12.33% | 12.73% | 14.78% | 13.94% | 12.66% | 11.99% | 12.57% | 13.57% | 14.67% | 15.36% | 15.71% | 15.91% | 16.19% |
Caterpillar Inc.'s profitability ratios have shown a positive trend over the last eight quarters. The gross profit margin has been steadily increasing from 29.38% in Q2 2022 to 36.23% in Q4 2023, indicating efficient cost control and pricing strategies. This suggests that the company is effectively managing its production costs and generating more revenue from its sales.
Similarly, the operating profit margin has also shown improvement, rising from 13.09% in Q2 2022 to 19.33% in Q4 2023. This indicates that the company has been successful in controlling its operating expenses and maximizing its operational efficiency.
The pretax margin has fluctuated slightly but has generally been on an upward trajectory, reaching 19.55% in Q4 2023. This suggests that Caterpillar Inc. has been effectively managing its pre-tax income in relation to its total revenue.
The net profit margin has also shown a positive trend, increasing from 11.28% in Q1 2022 to 15.41% in Q4 2023. This indicates that the company has been successful in managing its overall profitability after accounting for all expenses and taxes.
Overall, Caterpillar Inc.'s profitability ratios demonstrate a consistent improvement in its financial performance over the past eight quarters, reflecting effective cost management, operational efficiency, and overall profitability growth.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.82% | 13.26% | 12.28% | 10.50% | 9.65% | 9.68% | 8.72% | 8.41% | 8.31% | 8.23% | 7.31% | 6.15% | 5.81% | 6.55% | 7.91% | 9.87% | 10.57% | 10.67% | 10.66% | 10.66% |
| Return on assets (ROA) | 11.81% | 10.50% | 9.79% | 8.50% | 8.18% | 9.11% | 8.33% | 7.90% | 7.84% | 8.86% | 7.83% | 6.74% | 6.39% | 7.15% | 8.25% | 9.85% | 10.53% | 11.08% | 11.20% | 11.38% |
| Return on total capital | 29.48% | 56.14% | 57.45% | 48.32% | 19.00% | 50.15% | 44.89% | 40.47% | 16.16% | 39.81% | 35.36% | 29.87% | 11.00% | 33.50% | 43.97% | 52.58% | 20.26% | 55.51% | 56.71% | 54.22% |
| Return on equity (ROE) | 52.99% | 44.44% | 45.79% | 39.14% | 42.19% | 47.18% | 42.87% | 37.99% | 39.29% | 42.86% | 37.90% | 32.75% | 32.54% | 36.59% | 45.82% | 52.50% | 56.49% | 57.61% | 59.62% | 57.88% |
Caterpillar Inc. has shown consistent improvement in its profitability ratios over the quarters. The company's Operating return on assets (Operating ROA) has been on an upward trend, reaching 14.82% in Q4 2023 from 8.41% in Q1 2022. This indicates that the company has been effectively utilizing its assets to generate operating income.
Similarly, the Return on assets (ROA) has also been increasing steadily, reaching 11.81% in Q4 2023 from 7.90% in Q1 2022. This suggests that Caterpillar is becoming more efficient in generating profits from its total assets.
The Return on total capital has shown significant variation over the quarters, with a peak of 24.41% in Q1 2023 and a low of 12.71% in Q1 2022. This ratio indicates the company's ability to generate profits from both debt and equity capital invested in the business.
Moreover, Caterpillar's Return on equity (ROE) has shown an increasing trend, reaching 53.02% in Q4 2023 from 38.07% in Q1 2022. This indicates that the company is effectively generating returns for its shareholders.
Overall, Caterpillar Inc.'s profitability ratios demonstrate positive performance and efficiency in utilizing its resources to generate profits and returns for its investors.