Caterpillar Inc (CAT)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 86,791,000 | 85,427,000 | 83,649,000 | 81,943,000 | 80,907,000 | 81,107,000 | 82,276,000 | 82,793,000 | 80,784,000 | 81,697,000 | 80,729,000 | 78,324,000 | 76,741,000 | 76,566,000 | 75,894,000 | 78,453,000 | 77,993,000 | 79,187,000 | 78,726,000 |
| Debt-to-assets ratio | 0.28 | 0.00 | 0.00 | 0.00 | 0.31 | 0.00 | 0.00 | 0.00 | 0.31 | 0.00 | 0.00 | 0.00 | 0.33 | 0.00 | 0.00 | 0.00 | 0.33 | 0.00 | 0.00 | 0.00 |
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. over the past eight quarters has fluctuated within a range of 0.25 to 0.46. The ratio measures the proportion of the company's total assets that are financed by debt.
In Q1 2023 and Q3 2023, the ratio was at 0.26 and 0.43 respectively, indicating that 26% and 43% of Caterpillar's assets were funded by debt during those quarters. These figures suggest that the company has maintained a relatively conservative approach to debt financing during these periods.
On the other hand, the debt-to-assets ratio spiked to 0.46 in Q1 2022, Q2 2022, and Q4 2022, reaching its highest point in the last eight quarters. This increase may indicate a higher reliance on debt to fund its assets during those quarters.
Overall, the trend in Caterpillar Inc.'s debt-to-assets ratio shows some variability, with periods of higher and lower leverage. It is important for investors and analysts to closely monitor these fluctuations to assess the company's financial risk and its ability to meet debt obligations.
Peer comparison
Dec 31, 2023