Caterpillar Inc (CAT)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 13,885,000 | 13,561,000 | 9,755,000 | 8,275,000 | 4,835,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 19,494,000 | 19,494,000 | 15,869,000 | 16,484,000 | 15,331,000 |
| Return on total capital | 71.23% | 69.56% | 61.47% | 50.20% | 31.54% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $13,885,000K ÷ ($—K + $19,494,000K)
= 71.23%
Caterpillar Inc's Return on Total Capital has shown a positive trend over the years, increasing from 31.54% as of December 31, 2020, to 71.23% as of December 31, 2024. This indicates that the company has been effectively utilizing its total capital to generate returns for its stakeholders. The consistent growth in this ratio reflects Caterpillar Inc's ability to efficiently allocate its capital towards profitable investments and operations, which is a positive sign for the company's financial health and sustainability.
Peer comparison
Dec 31, 2024
Company name
Symbol
Return on total capital
Caterpillar Inc
CAT
71.23%
Astec Industries Inc
ASTE
3.86%
CNH Industrial N.V.
CNH
40.02%