Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Caterpillar Inc., solvency ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Debt Ratios
Debt to equity 1.94 2.33 2.29 2.42 2.58
Debt to equity (including operating lease liability) 1.97 2.37 2.33 2.46 2.62
Debt to capital 0.66 0.70 0.70 0.71 0.72
Debt to capital (including operating lease liability) 0.66 0.70 0.70 0.71 0.72
Debt to assets 0.43 0.45 0.46 0.47 0.48
Debt to assets (including operating lease liability) 0.44 0.46 0.46 0.48 0.49
Financial leverage 4.49 5.16 5.02 5.11 5.38
Coverage Ratios
Interest coverage 26.66 20.80 17.88 8.80 19.62
Fixed charge coverage 19.73 14.92 12.73 6.58 13.01

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Caterpillar Inc. debt to equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Caterpillar Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Caterpillar Inc. debt to capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Caterpillar Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Caterpillar Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Caterpillar Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Caterpillar Inc. financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Caterpillar Inc. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Caterpillar Inc. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023.

Debt to Equity

Caterpillar Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 4,643 5,957 5,404 2,015 5,166
Long-term debt due within one year 8,763 5,322 6,352 9,149 6,210
Long-term debt due after one year 24,472 25,714 26,033 25,999 26,281
Total debt 37,878 36,993 37,789 37,163 37,657
 
Equity attributable to common shareholders 19,494 15,869 16,484 15,331 14,588
Solvency Ratio
Debt to equity1 1.94 2.33 2.29 2.42 2.58
Benchmarks
Debt to Equity, Competitors2
Boeing Co.
Cummins Inc. 0.76 0.88 0.49 0.52 0.32
General Electric Co. 0.77 0.89 0.87 2.11 3.21
Honeywell International Inc. 1.29 1.17 1.06 1.28 0.87
Lockheed Martin Corp. 2.55 1.68 1.07 2.02 4.05
RTX Corp. 0.73 0.44 0.43 0.44 1.04
Debt to Equity, Sector
Capital Goods 1.65 1.40 1.30 1.81 2.19
Debt to Equity, Industry
Industrials 1.50 1.37 1.27 1.78 1.92

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to equity = Total debt ÷ Equity attributable to common shareholders
= 37,878 ÷ 19,494 = 1.94

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Caterpillar Inc. debt to equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Debt to Equity (including Operating Lease Liability)

Caterpillar Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 4,643 5,957 5,404 2,015 5,166
Long-term debt due within one year 8,763 5,322 6,352 9,149 6,210
Long-term debt due after one year 24,472 25,714 26,033 25,999 26,281
Total debt 37,878 36,993 37,789 37,163 37,657
Current operating lease liabilities (recognized in Other current liabilities) 147 151 158 163 173
Noncurrent operating lease liabilities (recognized in Other liabilities) 427 428 484 457 461
Total debt (including operating lease liability) 38,452 37,572 38,431 37,783 38,291
 
Equity attributable to common shareholders 19,494 15,869 16,484 15,331 14,588
Solvency Ratio
Debt to equity (including operating lease liability)1 1.97 2.37 2.33 2.46 2.62
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Boeing Co.
Cummins Inc. 0.81 0.93 0.54 0.57 0.38
General Electric Co. 0.84 0.96 0.94 2.20 3.32
Honeywell International Inc. 1.36 1.23 1.11 1.32 0.90
Lockheed Martin Corp. 2.73 1.81 1.19 2.21 4.40
RTX Corp. 0.76 0.47 0.46 0.47 1.11
Debt to Equity (including Operating Lease Liability), Sector
Capital Goods 1.72 1.46 1.36 1.88 2.29
Debt to Equity (including Operating Lease Liability), Industry
Industrials 1.68 1.53 1.42 1.94 2.03

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity attributable to common shareholders
= 38,452 ÷ 19,494 = 1.97

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Caterpillar Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Debt to Capital

Caterpillar Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 4,643 5,957 5,404 2,015 5,166
Long-term debt due within one year 8,763 5,322 6,352 9,149 6,210
Long-term debt due after one year 24,472 25,714 26,033 25,999 26,281
Total debt 37,878 36,993 37,789 37,163 37,657
Equity attributable to common shareholders 19,494 15,869 16,484 15,331 14,588
Total capital 57,372 52,862 54,273 52,494 52,245
Solvency Ratio
Debt to capital1 0.66 0.70 0.70 0.71 0.72
Benchmarks
Debt to Capital, Competitors2
Boeing Co. 1.49 1.39 1.35 1.40 1.46
Cummins Inc. 0.43 0.47 0.33 0.34 0.24
General Electric Co. 0.43 0.47 0.47 0.68 0.76
Honeywell International Inc. 0.56 0.54 0.51 0.56 0.46
Lockheed Martin Corp. 0.72 0.63 0.52 0.67 0.80
RTX Corp. 0.42 0.31 0.30 0.31 0.51
Debt to Capital, Sector
Capital Goods 0.62 0.58 0.56 0.64 0.69
Debt to Capital, Industry
Industrials 0.60 0.58 0.56 0.64 0.66

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 37,878 ÷ 57,372 = 0.66

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Caterpillar Inc. debt to capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Debt to Capital (including Operating Lease Liability)

Caterpillar Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 4,643 5,957 5,404 2,015 5,166
Long-term debt due within one year 8,763 5,322 6,352 9,149 6,210
Long-term debt due after one year 24,472 25,714 26,033 25,999 26,281
Total debt 37,878 36,993 37,789 37,163 37,657
Current operating lease liabilities (recognized in Other current liabilities) 147 151 158 163 173
Noncurrent operating lease liabilities (recognized in Other liabilities) 427 428 484 457 461
Total debt (including operating lease liability) 38,452 37,572 38,431 37,783 38,291
Equity attributable to common shareholders 19,494 15,869 16,484 15,331 14,588
Total capital (including operating lease liability) 57,946 53,441 54,915 53,114 52,879
Solvency Ratio
Debt to capital (including operating lease liability)1 0.66 0.70 0.70 0.71 0.72
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Boeing Co. 1.47 1.37 1.34 1.39 1.43
Cummins Inc. 0.45 0.48 0.35 0.36 0.28
General Electric Co. 0.46 0.49 0.49 0.69 0.77
Honeywell International Inc. 0.58 0.55 0.53 0.57 0.47
Lockheed Martin Corp. 0.73 0.64 0.54 0.69 0.81
RTX Corp. 0.43 0.32 0.31 0.32 0.53
Debt to Capital (including Operating Lease Liability), Sector
Capital Goods 0.63 0.59 0.58 0.65 0.70
Debt to Capital (including Operating Lease Liability), Industry
Industrials 0.63 0.60 0.59 0.66 0.67

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 38,452 ÷ 57,946 = 0.66

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Caterpillar Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Debt to Assets

Caterpillar Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 4,643 5,957 5,404 2,015 5,166
Long-term debt due within one year 8,763 5,322 6,352 9,149 6,210
Long-term debt due after one year 24,472 25,714 26,033 25,999 26,281
Total debt 37,878 36,993 37,789 37,163 37,657
 
Total assets 87,476 81,943 82,793 78,324 78,453
Solvency Ratio
Debt to assets1 0.43 0.45 0.46 0.47 0.48
Benchmarks
Debt to Assets, Competitors2
Boeing Co. 0.38 0.42 0.42 0.42 0.20
Cummins Inc. 0.21 0.26 0.18 0.18 0.12
General Electric Co. 0.13 0.17 0.18 0.30 0.34
Honeywell International Inc. 0.33 0.31 0.30 0.35 0.27
Lockheed Martin Corp. 0.33 0.29 0.23 0.24 0.27
RTX Corp. 0.27 0.20 0.20 0.20 0.31
Debt to Assets, Sector
Capital Goods 0.29 0.28 0.27 0.31 0.31
Debt to Assets, Industry
Industrials 0.30 0.29 0.29 0.32 0.32

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 37,878 ÷ 87,476 = 0.43

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Caterpillar Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023.

Debt to Assets (including Operating Lease Liability)

Caterpillar Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 4,643 5,957 5,404 2,015 5,166
Long-term debt due within one year 8,763 5,322 6,352 9,149 6,210
Long-term debt due after one year 24,472 25,714 26,033 25,999 26,281
Total debt 37,878 36,993 37,789 37,163 37,657
Current operating lease liabilities (recognized in Other current liabilities) 147 151 158 163 173
Noncurrent operating lease liabilities (recognized in Other liabilities) 427 428 484 457 461
Total debt (including operating lease liability) 38,452 37,572 38,431 37,783 38,291
 
Total assets 87,476 81,943 82,793 78,324 78,453
Solvency Ratio
Debt to assets (including operating lease liability)1 0.44 0.46 0.46 0.48 0.49
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Boeing Co. 0.40 0.43 0.43 0.43 0.21
Cummins Inc. 0.23 0.28 0.19 0.20 0.15
General Electric Co. 0.14 0.19 0.19 0.31 0.35
Honeywell International Inc. 0.35 0.33 0.32 0.36 0.28
Lockheed Martin Corp. 0.36 0.32 0.26 0.26 0.29
RTX Corp. 0.28 0.21 0.21 0.21 0.33
Debt to Assets (including Operating Lease Liability), Sector
Capital Goods 0.30 0.30 0.29 0.33 0.32
Debt to Assets (including Operating Lease Liability), Industry
Industrials 0.33 0.33 0.32 0.35 0.34

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 38,452 ÷ 87,476 = 0.44

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Caterpillar Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.

Financial Leverage

Caterpillar Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Total assets 87,476 81,943 82,793 78,324 78,453
Equity attributable to common shareholders 19,494 15,869 16,484 15,331 14,588
Solvency Ratio
Financial leverage1 4.49 5.16 5.02 5.11 5.38
Benchmarks
Financial Leverage, Competitors2
Boeing Co.
Cummins Inc. 3.62 3.38 2.80 2.81 2.63
General Electric Co. 5.96 5.16 4.93 7.13 9.40
Honeywell International Inc. 3.88 3.73 3.47 3.68 3.17
Lockheed Martin Corp. 7.67 5.71 4.64 8.43 15.20
RTX Corp. 2.71 2.19 2.21 2.25 3.34
Financial Leverage, Sector
Capital Goods 5.75 4.94 4.71 5.75 7.07
Financial Leverage, Industry
Industrials 5.04 4.64 4.43 5.50 5.99

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Financial leverage = Total assets ÷ Equity attributable to common shareholders
= 87,476 ÷ 19,494 = 4.49

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Caterpillar Inc. financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Interest Coverage

Caterpillar Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Profit attributable to common stockholders 10,335 6,705 6,489 2,998 6,093
Add: Net income attributable to noncontrolling interest (3) (1) 4 5 1
Add: Income tax expense 2,781 2,067 1,742 1,006 1,746
Add: Interest expense excluding Financial Products 511 443 488 514 421
Earnings before interest and tax (EBIT) 13,624 9,214 8,723 4,523 8,261
Solvency Ratio
Interest coverage1 26.66 20.80 17.88 8.80 19.62
Benchmarks
Interest Coverage, Competitors2
Boeing Co. 0.18 -0.98 -0.88 -5.71 -2.19
Cummins Inc. 5.34 15.17 25.78 24.38 27.00
General Electric Co. 10.12 1.88 -0.96 2.59 1.27
Honeywell International Inc. 10.36 16.41 22.09 17.75 22.17
Lockheed Martin Corp. 9.84 11.72 14.27 14.93 12.09
RTX Corp. 3.32 5.64 4.71 -0.65 5.65
Interest Coverage, Sector
Capital Goods 6.39 4.80 3.97 2.06 4.94
Interest Coverage, Industry
Industrials 6.92 5.50 6.00 2.09 4.43

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 13,624 ÷ 511 = 26.66

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Caterpillar Inc. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023.

Fixed Charge Coverage

Caterpillar Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Profit attributable to common stockholders 10,335 6,705 6,489 2,998 6,093
Add: Net income attributable to noncontrolling interest (3) (1) 4 5 1
Add: Income tax expense 2,781 2,067 1,742 1,006 1,746
Add: Interest expense excluding Financial Products 511 443 488 514 421
Earnings before interest and tax (EBIT) 13,624 9,214 8,723 4,523 8,261
Add: Operating lease cost 189 187 214 204 232
Earnings before fixed charges and tax 13,813 9,401 8,937 4,727 8,493
 
Interest expense excluding Financial Products 511 443 488 514 421
Operating lease cost 189 187 214 204 232
Fixed charges 700 630 702 718 653
Solvency Ratio
Fixed charge coverage1 19.73 14.92 12.73 6.58 13.01
Benchmarks
Fixed Charge Coverage, Competitors2
Boeing Co. 0.31 -0.70 -0.64 -4.75 -1.19
Cummins Inc. 4.01 8.85 10.72 9.60 9.94
General Electric Co. 5.25 1.35 -0.22 1.93 1.09
Honeywell International Inc. 8.13 11.00 13.67 11.49 14.06
Lockheed Martin Corp. 7.81 8.44 9.95 11.12 9.12
RTX Corp. 2.81 4.40 3.66 -0.22 4.31
Fixed Charge Coverage, Sector
Capital Goods 4.86 3.60 3.05 1.71 3.67
Fixed Charge Coverage, Industry
Industrials 4.47 3.57 3.93 1.63 2.98

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 13,813 ÷ 700 = 19.73

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Caterpillar Inc. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023.