Stock Analysis on Net
Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

Analysis of Investments

Microsoft Excel

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Caterpillar Inc., adjustment to profit attributable to common stockholders

US$ in millions

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Profit attributable to common stockholders (as reported) 10,335 6,705 6,489 2,998 6,093
Add: Available-for-sale securities 62 (138) (34) 34 35
Profit attributable to common stockholders (adjusted) 10,397 6,567 6,455 3,032 6,128

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).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Caterpillar Inc., adjusted profitability ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 16.18% 11.85% 13.47% 7.68% 12.00%
Adjusted net profit margin 16.28% 11.61% 13.40% 7.77% 12.07%
Return on Equity (ROE)
Reported ROE 53.02% 42.25% 39.37% 19.56% 41.77%
Adjusted ROE 53.33% 41.38% 39.16% 19.78% 42.01%
Return on Assets (ROA)
Reported ROA 11.81% 8.18% 7.84% 3.83% 7.77%
Adjusted ROA 11.89% 8.01% 7.80% 3.87% 7.81%

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).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Caterpillar Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Caterpillar Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Caterpillar Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Caterpillar Inc., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Profit attributable to common stockholders 10,335 6,705 6,489 2,998 6,093
Sales of Machinery, Energy & Transportation 63,869 56,574 48,188 39,022 50,755
Profitability Ratio
Net profit margin1 16.18% 11.85% 13.47% 7.68% 12.00%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted profit attributable to common stockholders 10,397 6,567 6,455 3,032 6,128
Sales of Machinery, Energy & Transportation 63,869 56,574 48,188 39,022 50,755
Profitability Ratio
Adjusted net profit margin2 16.28% 11.61% 13.40% 7.77% 12.07%

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).

2023 Calculations

1 Net profit margin = 100 × Profit attributable to common stockholders ÷ Sales of Machinery, Energy & Transportation
= 100 × 10,335 ÷ 63,869 = 16.18%

2 Adjusted net profit margin = 100 × Adjusted profit attributable to common stockholders ÷ Sales of Machinery, Energy & Transportation
= 100 × 10,397 ÷ 63,869 = 16.28%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Caterpillar Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Profit attributable to common stockholders 10,335 6,705 6,489 2,998 6,093
Equity attributable to common shareholders 19,494 15,869 16,484 15,331 14,588
Profitability Ratio
ROE1 53.02% 42.25% 39.37% 19.56% 41.77%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted profit attributable to common stockholders 10,397 6,567 6,455 3,032 6,128
Equity attributable to common shareholders 19,494 15,869 16,484 15,331 14,588
Profitability Ratio
Adjusted ROE2 53.33% 41.38% 39.16% 19.78% 42.01%

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).

2023 Calculations

1 ROE = 100 × Profit attributable to common stockholders ÷ Equity attributable to common shareholders
= 100 × 10,335 ÷ 19,494 = 53.02%

2 Adjusted ROE = 100 × Adjusted profit attributable to common stockholders ÷ Equity attributable to common shareholders
= 100 × 10,397 ÷ 19,494 = 53.33%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Caterpillar Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Profit attributable to common stockholders 10,335 6,705 6,489 2,998 6,093
Total assets 87,476 81,943 82,793 78,324 78,453
Profitability Ratio
ROA1 11.81% 8.18% 7.84% 3.83% 7.77%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted profit attributable to common stockholders 10,397 6,567 6,455 3,032 6,128
Total assets 87,476 81,943 82,793 78,324 78,453
Profitability Ratio
Adjusted ROA2 11.89% 8.01% 7.80% 3.87% 7.81%

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).

2023 Calculations

1 ROA = 100 × Profit attributable to common stockholders ÷ Total assets
= 100 × 10,335 ÷ 87,476 = 11.81%

2 Adjusted ROA = 100 × Adjusted profit attributable to common stockholders ÷ Total assets
= 100 × 10,397 ÷ 87,476 = 11.89%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Caterpillar Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.