Caterpillar Inc (CAT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 19,503,000 | 20,507,000 | 18,256,000 | 18,170,000 | 15,891,000 | 15,622,000 | 15,759,000 | 17,097,000 | 16,516,000 | 16,695,000 | 16,880,000 | 16,617,000 | 15,378,000 | 14,994,000 | 13,777,000 | 14,239,000 | 14,629,000 | 14,993,000 | 14,878,000 | 15,478,000 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $10,335,000K ÷ $19,503,000K
= 52.99%
Caterpillar Inc.'s return on equity (ROE) has displayed fluctuations over the past eight quarters. ROE is a key profitability ratio that measures a company's ability to generate net income from shareholder's equity.
In Q4 2023, Caterpillar Inc. achieved an ROE of 53.02%, marking a significant increase from the previous quarter at 44.48% in Q3 2023. This suggests that the company efficiently utilized shareholder equity to generate profits.
Looking at the trend over the eight quarters, Caterpillar Inc.'s ROE has generally been above 40%, demonstrating a consistent ability to generate strong returns for its shareholders. The highest ROE figure was recorded in Q4 2023 at 53.02%, indicating a peak performance in profitability during that period.
It's important to note that the quarterly fluctuations in ROE can be influenced by various factors such as changes in revenue, expenses, and asset management. Analyzing the components of ROE, such as net income margin, asset turnover, and financial leverage, can provide further insights into Caterpillar Inc.'s financial performance and efficiency in utilizing shareholder equity.
Overall, Caterpillar Inc.'s ROE has shown a positive trend over the past eight quarters, reflecting the company's ability to generate profits relative to shareholder equity. Monitoring ROE along with other financial metrics can provide a comprehensive view of the company's financial health and performance.
Peer comparison
Dec 31, 2023