Caterpillar Inc (CAT)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 10,335,000 | 6,705,000 | 6,489,000 | 2,998,000 | 6,093,000 |
| Total assets | US$ in thousands | 87,476,000 | 81,943,000 | 82,793,000 | 78,324,000 | 78,453,000 |
| ROA | 11.81% | 8.18% | 7.84% | 3.83% | 7.77% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $10,335,000K ÷ $87,476,000K
= 11.81%
The return on assets (ROA) for Caterpillar Inc. has demonstrated fluctuations over the past five years, ranging from 3.83% in 2020 to 11.81% in 2023. This metric indicates the company's ability to generate profit from its assets. The significant increase in ROA from 2020 to 2023 suggests an improvement in efficiency and profitability in utilizing its assets to generate earnings. However, the slight decrease in ROA from 2023 to 2022 and 2021 indicates a potential decrease in asset utilization efficiency and profitability levels during those years. Overall, Caterpillar Inc. has shown varying levels of performance in terms of generating returns from its assets over the last five years, with notable improvements in recent years.
Peer comparison
Dec 31, 2023