Caterpillar Inc (CAT)
Debt-to-equity 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 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 |
| Debt-to-equity ratio | 1.25 | 0.00 | 0.00 | 0.00 | 1.62 | 0.00 | 0.00 | 0.00 | 1.58 | 0.00 | 0.00 | 0.00 | 1.69 | 0.00 | 0.00 | 0.00 | 1.80 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $24,472,000K ÷ $19,503,000K
= 1.25
The debt-to-equity ratio for Caterpillar Inc. has fluctuated over the past eight quarters, indicating changes in the company's capital structure and financial leverage. In Q4 2023, the ratio stands at 1.94, which means that for every dollar of equity, the company has $1.94 in debt. This ratio has increased compared to the previous quarter, Q3 2023, where it was 1.81.
Looking back over the past year, we observe significant variations in the debt-to-equity ratio. The highest ratio was recorded in Q2 2022 at 2.35, indicating a higher level of debt relative to equity, while the lowest ratio was in Q1 2023 at 1.20, signifying a more conservative capital structure.
These fluctuations suggest that Caterpillar Inc. has been actively managing its debt levels and equity financing, which could be influenced by factors such as borrowing for expansion, repayments of debt, or fluctuations in equity values. It is important for investors and stakeholders to monitor these changes to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023