Caterpillar Inc (CAT)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 87,764,000 | 86,273,000 | 83,336,000 | 83,741,000 | 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 |
| 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 |
| Financial leverage ratio | 4.50 | 4.45 | 4.86 | 4.75 | 4.49 | 4.24 | 4.68 | 4.61 | 5.16 | 5.19 | 5.16 | 4.82 | 5.02 | 4.85 | 4.85 | 4.87 | 5.11 | 5.13 | 5.57 | 5.35 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $87,764,000K ÷ $19,491,000K
= 4.50
The financial leverage ratio of Caterpillar Inc has exhibited some fluctuations over the periods provided. The ratio measures the company's reliance on debt financing to support its operations and growth. From March 31, 2020, to December 31, 2024, the ratio ranged from a high of 5.57 to a low of 4.24.
During this period, the ratio generally decreased from 5.35 in March 2020 to 4.50 in December 2024, with some variations along the way. A lower financial leverage ratio indicates that the company is relying less on debt and has a stronger equity position to support its assets.
The decrease in the financial leverage ratio could be a positive sign for investors and creditors, as it suggests that Caterpillar Inc has been reducing its debt levels relative to its equity over time. However, a too low ratio may indicate underutilization of debt for potential growth opportunities.
It would be important to further investigate the reasons behind the fluctuations in the financial leverage ratio to assess the company's overall financial health and risk profile accurately.
Peer comparison
Dec 31, 2024