Caterpillar Inc (CAT)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 12,966,000 | 11,512,000 | 10,488,000 | 8,780,000 | 7,904,000 | 7,835,000 | 7,074,000 | 6,919,000 | 6,878,000 | 6,647,000 | 5,968,000 | 4,963,000 | 4,553,000 | 5,023,000 | 6,058,000 | 7,487,000 | 8,290,000 | 8,323,000 | 8,438,000 | 8,392,000 |
| Long-term debt | US$ in thousands | 24,472,000 | — | — | — | 25,714,000 | — | — | — | 26,033,000 | — | — | — | 25,999,000 | — | — | — | 26,281,000 | — | — | — |
| 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 |
| Return on total capital | 29.48% | 56.14% | 57.45% | 48.32% | 19.00% | 50.15% | 44.89% | 40.47% | 16.16% | 39.81% | 35.36% | 29.87% | 11.00% | 33.50% | 43.97% | 52.58% | 20.26% | 55.51% | 56.71% | 54.22% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $12,966,000K ÷ ($24,472,000K + $19,503,000K)
= 29.48%
Caterpillar Inc.'s return on total capital has shown fluctuations over the past eight quarters. The return on total capital was highest in Q1 2023 at 24.41% and lowest in Q2 2022 at 12.71%. Overall, the return on total capital has been above 20% for the majority of the quarters, indicating efficient utilization of both debt and equity capital to generate profits. The improvement in Q1 2023 compared to the previous quarter suggests that Caterpillar Inc. was able to enhance its capital efficiency. Monitoring and sustaining this trend will be crucial for long-term financial performance and maximizing shareholder value.
Peer comparison
Dec 31, 2023