Caterpillar Inc (CAT)

Debt-to-assets ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Long-term debt US$ in thousands 24,472,000 25,714,000 26,033,000 25,999,000 26,281,000
Total assets US$ in thousands 87,476,000 81,943,000 82,793,000 78,324,000 78,453,000
Debt-to-assets ratio 0.28 0.31 0.31 0.33 0.33

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $24,472,000K ÷ $87,476,000K
= 0.28

The debt-to-assets ratio for Caterpillar Inc. has been gradually decreasing over the past five years, indicating an improving financial position in terms of leverage. In 2019, the ratio stood at 0.48, which means that 48% of the company's assets were financed by debt. Since then, Caterpillar has been able to reduce its reliance on debt financing as evidenced by the decreasing trend in subsequent years.

By the end of 2023, the debt-to-assets ratio had reached 0.43, signaling that only 43% of the company's assets were funded by debt. This suggests that Caterpillar has been effectively managing its debt levels relative to its asset base, potentially lowering financial risk and enhancing its overall financial stability.

Overall, the declining debt-to-assets ratio for Caterpillar Inc. demonstrates a positive trend in terms of its debt management and financial health, as the company has been progressively reducing its debt burden in relation to its total assets.


Peer comparison

Dec 31, 2023

Company name
Symbol
Debt-to-assets ratio
Caterpillar Inc
CAT
0.28
Astec Industries Inc
ASTE
0.07

See also:

Caterpillar Inc Debt to Assets