Caterpillar Inc (CAT)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 14,101,000 | 14,126,000 | 14,372,000 | 14,192,000 | 13,988,000 | 13,905,000 | 13,135,000 | 11,460,000 | 10,271,000 | 9,505,000 | 8,727,000 | 8,461,000 | 8,353,000 | 6,996,000 | 6,282,000 | 5,378,000 | 4,835,000 | 5,125,000 | 6,013,000 | 7,260,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 19,491,000 | 19,397,000 | 17,130,000 | 17,639,000 | 19,494,000 | 20,489,000 | 18,235,000 | 18,149,000 | 15,869,000 | 15,591,000 | 15,727,000 | 17,065,000 | 16,484,000 | 16,665,000 | 16,833,000 | 16,573,000 | 15,331,000 | 14,949,000 | 13,734,000 | 14,197,000 |
| Return on total capital | 72.35% | 72.83% | 83.90% | 80.46% | 71.76% | 67.87% | 72.03% | 63.14% | 64.72% | 60.96% | 55.49% | 49.58% | 50.67% | 41.98% | 37.32% | 32.45% | 31.54% | 34.28% | 43.78% | 51.14% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $14,101,000K ÷ ($—K + $19,491,000K)
= 72.35%
Caterpillar Inc's return on total capital has exhibited fluctuating trends over the provided periods. The ratios ranged from a high of 83.90% as of June 30, 2024, to a low of 31.54% as of December 31, 2020. The company's return on total capital generally showed an increasing pattern from 2020 to 2023, with notable improvements in performance. However, there was a slight decline in the ratio in the last two quarters of 2024 compared to the peak in June 2024. It is essential for stakeholders to monitor Caterpillar Inc's capital efficiency closely to assess its ability to generate returns relative to its total capital employed.
Peer comparison
Dec 31, 2024