Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Caterpillar Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
U.S.	1,584)	1,627)	1,055)	766)	18)
Non-U.S.	1,531)	1,592)	1,255)	1,283)	1,031)
State (U.S.)	135)	154)	134)	76)	31)
Current tax provision	3,250)	3,373)	2,444)	2,125)	1,080)
U.S.	(553)	(391)	(404)	(387)	(44)
Non-U.S.	(69)	(164)	50)	54)	(34)
State (U.S.)	1)	(37)	(23)	(50)	4)
Deferred tax benefit	(621)	(592)	(377)	(383)	(74)
Provision for income taxes	2,629)	2,781)	2,067)	1,742)	1,006)

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).

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Item	Description	The company
Current tax provision	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Caterpillar Inc. current tax provision increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Deferred tax benefit	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Caterpillar Inc. deferred tax benefit decreased from 2022 to 2023 and from 2023 to 2024.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Caterpillar Inc. provision for income taxes increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Caterpillar Inc., effective income tax rate (EITR) reconciliation

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
U.S. statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Non-U.S. subsidiaries taxed at other than the U.S. rate	1.40%	1.00%	2.70%	2.60%	7.10%
State and local taxes, net of federal	0.90%	0.70%	1.00%	0.30%	0.80%
U.S. tax incentives	-1.80%	-1.30%	-1.90%	-1.50%	-1.30%
Tax law change related to currency translation	-1.70%	0.00%	0.00%	0.00%	0.00%
Nondeductible goodwill	0.00%	0.00%	1.80%	0.00%	0.00%
Other, net	-0.10%	-0.10%	-1.00%	-1.20%	-2.40%
Effective tax rate	19.70%	21.30%	23.60%	21.20%	25.20%

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).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Caterpillar Inc. effective tax rate decreased from 2022 to 2023 and from 2023 to 2024.

Caterpillar Inc., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Research expenditures	1,735)	1,350)	949)	415)	193)
Tax carryforwards	1,346)	1,389)	1,349)	1,380)	1,346)
Postemployment benefits	560)	656)	728)	959)	1,315)
Employee compensation and benefits	531)	634)	459)	464)	267)
Warranty reserves	303)	325)	282)	266)	247)
Post sale discounts	260)	253)	159)	143)	153)
Inventory valuation	183)	138)	147)	—)	—)
Lease obligations	151)	144)	144)	159)	154)
Other, net	288)	205)	382)	509)	326)
Deferred income tax assets, gross	5,357)	5,094)	4,599)	4,295)	4,001)
Valuation allowance for deferred tax assets	(874)	(934)	(1,014)	(1,028)	(1,009)
Deferred income tax assets	4,483)	4,160)	3,585)	3,267)	2,992)
Capital and intangible assets, including lease basis differences	(1,270)	(1,312)	(1,401)	(1,457)	(1,526)
Other outside basis differences	(253)	(267)	(264)	(264)	(284)
Undistributed profits, including translation adjustments	(201)	(401)	(344)	(289)	(242)
Deferred income tax liabilities	(1,724)	(1,980)	(2,009)	(2,010)	(2,052)
Deferred income taxes, net	2,759)	2,180)	1,576)	1,257)	940)

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).

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Item	Description	The company
Deferred income tax assets, gross	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Caterpillar Inc. deferred income tax assets, gross increased from 2022 to 2023 and from 2023 to 2024.
Deferred income tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Caterpillar Inc. deferred income tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred income taxes, net	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Caterpillar Inc. deferred income taxes, net increased from 2022 to 2023 and from 2023 to 2024.

Caterpillar Inc., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
	Deferred income tax assets (included in Noncurrent deferred and refundable income taxes)	3,191)	2,634)	2,047)	1,669)	1,358)
	Deferred income tax liabilities (included in Other liabilities)	432)	454)	471)	412)	418)

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).

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Item	Description	The company
Deferred income tax assets (included in Noncurrent deferred and refundable income taxes)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Caterpillar Inc. deferred income tax assets (included in Noncurrent deferred and refundable income taxes) increased from 2022 to 2023 and from 2023 to 2024.
Deferred income tax liabilities (included in Other liabilities)	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Caterpillar Inc. deferred income tax liabilities (included in Other liabilities) decreased from 2022 to 2023 and from 2023 to 2024.

Caterpillar Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	87,764)	87,476)	81,943)	82,793)	78,324)
Less: Noncurrent deferred tax assets, net	3,191)	2,634)	2,047)	1,669)	1,358)
Total assets (adjusted)	84,573)	84,842)	79,896)	81,124)	76,966)
Adjustment to Total Liabilities
Total liabilities (as reported)	68,270)	67,973)	66,052)	66,277)	62,946)
Less: Noncurrent deferred tax liabilities, net	432)	454)	471)	412)	418)
Total liabilities (adjusted)	67,838)	67,519)	65,581)	65,865)	62,528)
Adjustment to Equity Attributable To Common Shareholders
Equity attributable to common shareholders (as reported)	19,491)	19,494)	15,869)	16,484)	15,331)
Less: Net deferred tax assets (liabilities)	2,759)	2,180)	1,576)	1,257)	940)
Equity attributable to common shareholders (adjusted)	16,732)	17,314)	14,293)	15,227)	14,391)
Adjustment to Profit Attributable To Common Stockholders
Profit attributable to common stockholders (as reported)	10,792)	10,335)	6,705)	6,489)	2,998)
Add: Deferred income tax expense (benefit)	(621)	(592)	(377)	(383)	(74)
Profit attributable to common stockholders (adjusted)	10,171)	9,743)	6,328)	6,106)	2,924)

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).

Caterpillar Inc., Financial Data: Reported vs. Adjusted

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Caterpillar Inc., adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	17.59%	16.18%	11.85%	13.47%	7.68%
Adjusted net profit margin	16.58%	15.25%	11.19%	12.67%	7.49%
Total Asset Turnover
Reported total asset turnover	0.70	0.73	0.69	0.58	0.50
Adjusted total asset turnover	0.73	0.75	0.71	0.59	0.51
Financial Leverage
Reported financial leverage	4.50	4.49	5.16	5.02	5.11
Adjusted financial leverage	5.05	4.90	5.59	5.33	5.35
Return on Equity (ROE)
Reported ROE	55.37%	53.02%	42.25%	39.37%	19.56%
Adjusted ROE	60.79%	56.27%	44.27%	40.10%	20.32%
Return on Assets (ROA)
Reported ROA	12.30%	11.81%	8.18%	7.84%	3.83%
Adjusted ROA	12.03%	11.48%	7.92%	7.53%	3.80%

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).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Caterpillar Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Caterpillar Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Caterpillar Inc. adjusted financial leverage ratio decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Caterpillar Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Caterpillar Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Caterpillar Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Profit attributable to common stockholders	10,792)	10,335)	6,705)	6,489)	2,998)
Sales of Machinery, Energy & Transportation	61,363)	63,869)	56,574)	48,188)	39,022)
Profitability Ratio
Net profit margin¹	17.59%	16.18%	11.85%	13.47%	7.68%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted profit attributable to common stockholders	10,171)	9,743)	6,328)	6,106)	2,924)
Sales of Machinery, Energy & Transportation	61,363)	63,869)	56,574)	48,188)	39,022)
Profitability Ratio
Adjusted net profit margin²	16.58%	15.25%	11.19%	12.67%	7.49%

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).

2024 Calculations

¹ Net profit margin = 100 × Profit attributable to common stockholders ÷ Sales of Machinery, Energy & Transportation
= 100 × 10,792 ÷ 61,363 = 17.59%

² Adjusted net profit margin = 100 × Adjusted profit attributable to common stockholders ÷ Sales of Machinery, Energy & Transportation
= 100 × 10,171 ÷ 61,363 = 16.58%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Caterpillar Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Sales of Machinery, Energy & Transportation	61,363)	63,869)	56,574)	48,188)	39,022)
Total assets	87,764)	87,476)	81,943)	82,793)	78,324)
Activity Ratio
Total asset turnover¹	0.70	0.73	0.69	0.58	0.50
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales of Machinery, Energy & Transportation	61,363)	63,869)	56,574)	48,188)	39,022)
Adjusted total assets	84,573)	84,842)	79,896)	81,124)	76,966)
Activity Ratio
Adjusted total asset turnover²	0.73	0.75	0.71	0.59	0.51

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).

2024 Calculations

¹ Total asset turnover = Sales of Machinery, Energy & Transportation ÷ Total assets
= 61,363 ÷ 87,764 = 0.70

² Adjusted total asset turnover = Sales of Machinery, Energy & Transportation ÷ Adjusted total assets
= 61,363 ÷ 84,573 = 0.73

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Caterpillar Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	87,764)	87,476)	81,943)	82,793)	78,324)
Equity attributable to common shareholders	19,491)	19,494)	15,869)	16,484)	15,331)
Solvency Ratio
Financial leverage¹	4.50	4.49	5.16	5.02	5.11
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	84,573)	84,842)	79,896)	81,124)	76,966)
Adjusted equity attributable to common shareholders	16,732)	17,314)	14,293)	15,227)	14,391)
Solvency Ratio
Adjusted financial leverage²	5.05	4.90	5.59	5.33	5.35

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).

2024 Calculations

¹ Financial leverage = Total assets ÷ Equity attributable to common shareholders
= 87,764 ÷ 19,491 = 4.50

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity attributable to common shareholders
= 84,573 ÷ 16,732 = 5.05

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Caterpillar Inc. adjusted financial leverage ratio decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Profit attributable to common stockholders	10,792)	10,335)	6,705)	6,489)	2,998)
Equity attributable to common shareholders	19,491)	19,494)	15,869)	16,484)	15,331)
Profitability Ratio
ROE¹	55.37%	53.02%	42.25%	39.37%	19.56%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted profit attributable to common stockholders	10,171)	9,743)	6,328)	6,106)	2,924)
Adjusted equity attributable to common shareholders	16,732)	17,314)	14,293)	15,227)	14,391)
Profitability Ratio
Adjusted ROE²	60.79%	56.27%	44.27%	40.10%	20.32%

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).

2024 Calculations

¹ ROE = 100 × Profit attributable to common stockholders ÷ Equity attributable to common shareholders
= 100 × 10,792 ÷ 19,491 = 55.37%

² Adjusted ROE = 100 × Adjusted profit attributable to common stockholders ÷ Adjusted equity attributable to common shareholders
= 100 × 10,171 ÷ 16,732 = 60.79%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Caterpillar Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Profit attributable to common stockholders	10,792)	10,335)	6,705)	6,489)	2,998)
Total assets	87,764)	87,476)	81,943)	82,793)	78,324)
Profitability Ratio
ROA¹	12.30%	11.81%	8.18%	7.84%	3.83%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted profit attributable to common stockholders	10,171)	9,743)	6,328)	6,106)	2,924)
Adjusted total assets	84,573)	84,842)	79,896)	81,124)	76,966)
Profitability Ratio
Adjusted ROA²	12.03%	11.48%	7.92%	7.53%	3.80%

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).

2024 Calculations

¹ ROA = 100 × Profit attributable to common stockholders ÷ Total assets
= 100 × 10,792 ÷ 87,764 = 12.30%

² Adjusted ROA = 100 × Adjusted profit attributable to common stockholders ÷ Adjusted total assets
= 100 × 10,171 ÷ 84,573 = 12.03%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Caterpillar Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Caterpillar Inc. (NYSE:CAT)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Caterpillar Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Caterpillar Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)