Caterpillar Inc (CAT)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 10,335,000 | 9,113,000 | 8,360,000 | 7,111,000 | 6,705,000 | 7,371,000 | 6,756,000 | 6,496,000 | 6,489,000 | 7,155,000 | 6,397,000 | 5,442,000 | 5,004,000 | 5,487,000 | 6,313,000 | 7,475,000 | 8,264,000 | 8,638,000 | 8,871,000 | 8,958,000 |
| Total assets | US$ in thousands | 87,476,000 | 86,791,000 | 85,427,000 | 83,649,000 | 81,943,000 | 80,907,000 | 81,107,000 | 82,276,000 | 82,793,000 | 80,784,000 | 81,697,000 | 80,729,000 | 78,324,000 | 76,741,000 | 76,566,000 | 75,894,000 | 78,453,000 | 77,993,000 | 79,187,000 | 78,726,000 |
| 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% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $10,335,000K ÷ $87,476,000K
= 11.81%
Over the past eight quarters, Caterpillar Inc.'s return on assets (ROA) has shown a generally increasing trend, with some fluctuations along the way. The ROA has improved from 7.90% in Q1 2022 to 11.81% in Q4 2023, indicating that the company has been effectively utilizing its assets to generate profits. This upward trajectory suggests that Caterpillar has been managing its assets efficiently and/or increasing its profitability relative to the size of its asset base.
The average ROA over the period is approximately 9.46%, indicating that, on average, the company has been generating a return of 9.46 cents for every dollar of assets it holds. This performance is generally favorable, although it is important to delve deeper into the company's operations and financial health to fully understand the drivers behind this ROA trend.
Investors and stakeholders may view the improving ROA positively as it indicates the company's ability to generate earnings from its asset base. However, it is essential to continue monitoring the company's operational efficiency, asset management, and profitability to ensure sustainable growth in the future.
Peer comparison
Dec 31, 2023