Caterpillar Inc (CAT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 36.06% | 35.91% | 35.90% | 35.22% | 34.69% | 33.48% | 32.40% | 31.00% | 29.47% | 28.98% | 28.57% | 28.81% | 29.43% | 30.23% | 30.05% | 29.38% | 28.93% | 28.86% | 29.60% | 30.09% |
| Operating profit margin | 20.56% | 20.61% | 20.85% | 20.52% | 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% |
| Pretax margin | 20.63% | 20.37% | 20.79% | 20.82% | 19.46% | 17.87% | 16.89% | 15.21% | 14.73% | 16.27% | 15.61% | 15.58% | 16.10% | 13.60% | 12.36% | 10.42% | 9.57% | 10.12% | 11.95% | 13.85% |
| Net profit margin | 16.65% | 16.26% | 16.58% | 16.79% | 15.41% | 13.69% | 12.91% | 11.53% | 11.28% | 13.02% | 12.50% | 12.33% | 12.73% | 10.64% | 9.57% | 7.99% | 7.18% | 7.60% | 8.90% | 10.41% |
Caterpillar Inc's profitability ratios have shown steady improvement over the years. The gross profit margin has increased consistently from 30.09% in March 2020 to 36.06% in December 2024. This indicates the company's ability to control production costs and generate higher profits from its revenues.
Similarly, the operating profit margin has shown a positive trend, increasing from 14.69% in March 2020 to 20.56% in December 2024. This demonstrates effective cost management and operational efficiency within the company.
The pretax margin reflects the company's ability to generate profits before taxes, showing an upward trend from 13.85% in March 2020 to 20.63% in December 2024. This indicates Caterpillar's ability to increase profitability while managing its tax liabilities effectively.
Lastly, the net profit margin, which represents the company's bottom line profitability, has also shown improvement, rising from 10.41% in March 2020 to 16.65% in December 2024. This suggests that Caterpillar has been successful in increasing its profitability after accounting for all expenses, including taxes and interest.
Overall, Caterpillar Inc's profitability ratios reflect sustained growth and efficiency in managing its costs and operations, ultimately leading to improved profitability over the years.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.18% | 15.69% | 16.60% | 16.42% | 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% |
| Return on assets (ROA) | 12.30% | 12.38% | 13.21% | 13.43% | 11.81% | 10.50% | 9.79% | 8.50% | 8.18% | 9.11% | 8.33% | 7.90% | 7.84% | 6.37% | 5.37% | 4.26% | 3.83% | 4.32% | 5.41% | 6.99% |
| Return on total capital | 72.35% | 72.83% | 83.90% | 80.46% | 71.76% | 67.87% | 72.03% | 63.14% | 64.72% | 60.96% | 55.49% | 49.58% | 50.67% | 41.98% | 37.32% | 32.45% | 31.54% | 34.28% | 43.78% | 51.14% |
| Return on equity (ROE) | 55.37% | 55.04% | 64.26% | 63.77% | 53.02% | 44.48% | 45.85% | 39.18% | 42.25% | 47.28% | 42.96% | 38.07% | 39.37% | 30.90% | 26.09% | 20.73% | 19.56% | 22.18% | 30.16% | 37.36% |
Caterpillar Inc's profitability ratios exhibit a positive trend over the reporting periods with improvement in key metrics.
1. Operating Return on Assets (Operating ROA) has shown a consistent increase from 9.87% on March 31, 2020, to 15.18% on December 31, 2024. This indicates the company's ability to generate profits from its operational activities relative to its total assets.
2. Return on Assets (ROA) has also displayed a steady growth trajectory, starting at 6.99% on March 31, 2020, and reaching 12.30% on December 31, 2024. ROA reflects the efficiency of utilizing assets to generate earnings, and the upward trend signifies improved asset management effectiveness.
3. Return on Total Capital has seen a significant upward trend, increasing from 51.14% on March 31, 2020, to 72.35% on December 31, 2024. This metric highlights the return generated from both debt and equity capital invested in the company, indicating Caterpillar's ability to generate profit from its total capital base.
4. Return on Equity (ROE) has steadily improved from 37.36% on March 31, 2020, to 55.37% on December 31, 2024. ROE illustrates the company's ability to generate profits from shareholders' equity, reflecting solid management performance and increasing shareholder value over the period.
Overall, the increasing profitability ratios demonstrate Caterpillar Inc's efficient operations, effective asset utilization, and strong performance in generating returns for both debt and equity investors.