Caterpillar Inc (CAT)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 10,792,000 | 10,335,000 | 6,705,000 | 6,489,000 | 2,998,000 |
| Total assets | US$ in thousands | 87,764,000 | 87,476,000 | 81,943,000 | 82,793,000 | 78,324,000 |
| ROA | 12.30% | 11.81% | 8.18% | 7.84% | 3.83% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $10,792,000K ÷ $87,764,000K
= 12.30%
Caterpillar Inc's return on assets (ROA) has exhibited a positive trend over the past five years, increasing from 3.83% as of December 31, 2020, to 12.30% as of December 31, 2024. This signifies an improvement in the company's ability to generate earnings relative to its total assets. The consistent growth in ROA reflects effective management of assets to generate profits, indicating increased efficiency and profitability in utilizing the company's resources. This upward trajectory suggests that Caterpillar Inc has been enhancing its operational performance and optimizing the utilization of its assets to drive overall profitability.
Peer comparison
Dec 31, 2024