Caterpillar Inc (CAT)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 87,764,000 | 87,476,000 | 81,943,000 | 82,793,000 | 78,324,000 |
| Total stockholders’ equity | US$ in thousands | 19,494,000 | 19,494,000 | 15,869,000 | 16,484,000 | 15,331,000 |
| Financial leverage ratio | 4.50 | 4.49 | 5.16 | 5.02 | 5.11 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $87,764,000K ÷ $19,494,000K
= 4.50
The financial leverage ratio of Caterpillar Inc has exhibited fluctuations over the past five years. As of December 31, 2020, the ratio stood at 5.11. It then slightly decreased to 5.02 by the end of 2021. Subsequently, the ratio increased to 5.16 by December 31, 2022. However, there was a notable decrease in the financial leverage ratio to 4.49 as of December 31, 2023, followed by a marginal increase to 4.50 by the end of 2024. This trend suggests varying degrees of debt utilization by Caterpillar Inc to finance its operations and investments during the period under review.
Peer comparison
Dec 31, 2024