Analysis of Debt
Total Debt (Carrying Amount)
Caterpillar Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
- Short-term borrowings
- The short-term borrowings exhibited a significant increase from 2020 to 2022, rising from 2,015 million US dollars in 2020 to a peak of 5,957 million US dollars in 2022. However, there was a decline in the subsequent years, with amounts decreasing to 4,643 million in 2023 and further to 4,393 million in 2024. This indicates a sharp rise in reliance on short-term financing followed by reduction over the last two years.
- Long-term debt due within one year
- This category saw a decreasing trend initially, dropping from 9,149 million US dollars in 2020 to 5,322 million in 2022. However, it then increased again in 2023 to 8,763 million before declining to 6,665 million in 2024. This pattern suggests fluctuations in the company's upcoming long-term obligations, with a notable reduction in 2022 followed by a short-term increase and another decrease.
- Long-term debt due after one year
- The amount of long-term debt due after one year remained relatively stable over the period. It started at 25,999 million US dollars in 2020, remained close at 26,033 million in 2021, and slightly declined to 25,714 million in 2022 and 24,472 million in 2023. In 2024, there was an increase to 27,351 million. Overall, the long-term debt level exhibited stability with minor fluctuations and a slight increase in the final year.
- Total short-term borrowings and long-term debt (carrying amount)
- The total debt carrying amount fluctuated modestly between 37,163 million US dollars in 2020 and 38,409 million in 2024. There was a gradual increase in 2021 to 37,789 million, followed by a decrease to 36,993 million in 2022. The total debt amount then increased again to 37,878 million in 2023 and reached the highest level in 2024 at 38,409 million. This suggests that the overall indebtedness of the company has been relatively stable with slight growth towards the end of the period.
Total Debt (Fair Value)
| Dec 31, 2024 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Short-term borrowings | 4,393) |
| Machinery, Energy & Transportation | 7,980) |
| Financial Products | 25,304) |
| Total long-term debt, including amounts due within one year (fair value) | 33,284) |
| Total short-term borrowings and long-term debt (fair value) | 37,677) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.98 |
Based on: 10-K (reporting date: 2024-12-31).
Weighted-average Interest Rate on Debt
Weighted-average effective yield to maturity: 4.68%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 4.50% | 3,946) | 178) | |
| 10.80% | 165) | 18) | |
| 4.20% | 282) | 12) | |
| 5.27% | 753) | 40) | |
| 6.68% | 193) | 13) | |
| 2.67% | 498) | 13) | |
| 2.72% | 796) | 22) | |
| 2.04% | 496) | 10) | |
| 7.38% | 241) | 18) | |
| 8.64% | 237) | 20) | |
| 6.12% | 457) | 28) | |
| 8.38% | 64) | 5) | |
| 7.02% | 158) | 11) | |
| 6.39% | 1,375) | 88) | |
| 4.39% | 494) | 22) | |
| 3.34% | 984) | 33) | |
| 3.32% | 1,186) | 39) | |
| 4.81% | 494) | 24) | |
| 7.51% | 241) | 18) | |
| Total | 13,060) | 611) | |
| 4.68% | |||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 611 ÷ 13,060 = 4.68%