Stock Analysis on Net
Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

Common-Size Income Statement 

Caterpillar Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Sales of Machinery, Energy & Transportation 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -65.51 -66.96 -73.09 -73.70 -74.53
Gross margin 34.49% 33.04% 26.91% 26.30% 25.47%
Revenues of Financial Products 5.62 5.00 5.04 5.78 6.99
Selling, general and administrative expenses -10.86 -9.98 -9.99 -11.13 -11.90
Research and development expenses -3.43 -3.30 -3.21 -3.50 -3.63
Interest expense of Financial Products -2.10 -1.61 -1.00 -0.94 -1.51
Goodwill impairment charge 0.00 0.00 -1.64 0.00 0.00
Other operating income (expenses) -2.41 -2.85 -2.15 -2.23 -3.76
Operating profit 21.30% 20.30% 13.97% 14.27% 11.67%
Interest expense excluding Financial Products -0.83 -0.80 -0.78 -1.01 -1.32
Investment and interest income 0.79 0.77 0.30 0.17 0.29
Foreign exchange gains (losses) 0.12 -0.15 0.18 0.23 -0.49
License fee income 0.23 0.23 0.25 0.26 0.27
Gains (losses) on securities 0.06 0.02 -0.10 0.28 0.09
Net periodic pension and OPEB income (cost), excluding service cost 0.27 0.07 1.53 2.65 -0.23
Miscellaneous income (loss) -0.14 -0.01 0.12 0.18 -0.04
Other income (expense) 1.32% 0.93% 2.28% 3.76% -0.11%
Consolidated profit before taxes 21.79% 20.43% 15.47% 17.02% 10.24%
Provision for income taxes -4.28 -4.35 -3.65 -3.62 -2.58
Profit of consolidated companies 17.51% 16.08% 11.82% 13.41% 7.66%
Equity in profit of unconsolidated affiliated companies 0.07 0.10 0.03 0.06 0.04
Profit of consolidated and affiliated companies 17.58% 16.18% 11.85% 13.47% 7.70%
(Profit) loss attributable to noncontrolling interests 0.01 0.00 0.00 -0.01 -0.01
Profit attributable to common stockholders 17.59% 16.18% 11.85% 13.47% 7.68%

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).

Cost of Goods Sold and Gross Margin
The cost of goods sold as a percentage of sales decreased consistently from -74.53% in 2020 to -65.51% in 2024, indicating improved cost efficiency. Correspondingly, the gross margin showed a steady increase from 25.47% to 34.49% during the same period, reflecting enhanced profitability in the core business segment.
Revenues of Financial Products
This revenue stream declined from 6.99% in 2020 to 5% in 2023 before slightly increasing to 5.62% in 2024. The decrease suggests a modest contraction or reduced contribution from financial products relative to machinery sales, followed by a mild recovery.
Selling, General and Administrative Expenses (SG&A)
SG&A expenses gradually decreased from -11.90% in 2020 to a low of -9.98% in 2023 but rose slightly to -10.86% in 2024. This pattern implies an initial improvement in expense management which somewhat reversed in the latest year.
Research and Development Expenses
R&D expenses consistently remained around -3.2% to -3.6% of sales, with minor fluctuations, indicating a relatively stable investment in innovation relative to sales over the period.
Interest Expense of Financial Products
There was a general upward trend in interest expense related to financial products, rising from -1.51% in 2020 to -2.10% in 2024, suggesting increased cost of debt or financing activities within this segment.
Goodwill Impairment Charge
A distinct goodwill impairment charge appeared only in 2022 at -1.64% which impacted profitability in that year but was not present otherwise, indicating a one-time non-recurring expense.
Other Operating Income (Expenses)
Other operating income (expenses) improved from -3.76% in 2020 to -2.41% in 2024, signaling a reduction in net expenses or increased ancillary operational income.
Operating Profit
Operating profit increased markedly from 11.67% to 21.3% over the period, consistent with improving gross margins and tighter control of operating expenses.
Interest Expense Excluding Financial Products
This expense showed a declining trend from -1.32% in 2020 to a more stable range near -0.8% in recent years, indicating reduced financing costs outside the financial product segment.
Investment and Interest Income
Income from investments and interest rose significantly from 0.29% in 2020 to 0.79% in 2024, reflecting higher returns from non-operating activities.
Foreign Exchange Gains (Losses)
Foreign exchange results fluctuated between slight gains and losses, with no clear trend, indicating variable currency impacts on financial performance.
License Fee Income
License fee income remained fairly stable at approximately 0.23% to 0.27% of sales, representing a minor but consistent revenue source.
Gains (Losses) on Securities
Gains or losses on securities showed small fluctuations around zero, with no significant impact on overall financial outcomes.
Net Periodic Pension and OPEB Income (Cost), Excluding Service Cost
This item improved greatly from a slight cost of -0.23% in 2020 to positive income figures, though with a peak in 2021 at 2.65%, then stabilizing near zero, representing better pension-related financial effects over time.
Miscellaneous Income (Loss)
Miscellaneous income showed minor variances, generally close to zero, implying limited impact on overall results.
Other Income (Expense)
Other income showed a notable jump in 2021 to 3.76%, then decreased but remained positive, reflecting occasional beneficial non-operating contributions.
Consolidated Profit Before Taxes
This profitability measure increased from 10.24% in 2020 to 21.79% in 2024, aligning with improved operating margins and income stability.
Provision for Income Taxes
Tax provisions increased moderately as a percentage of sales from -2.58% to approximately -4.3%, paralleling higher pre-tax profits.
Profit of Consolidated Companies
Net profit improved substantially from 7.66% to 17.51%, following the trend in consolidated profit before taxes and reflecting effective cost and tax management.
Equity in Profit of Unconsolidated Affiliated Companies
These profits remained small and relatively stable, contributing marginally to consolidated earnings.
Profit of Consolidated and Affiliated Companies
This combined profit measure tracked closely with consolidated company profits, increasing from 7.7% to 17.58%, demonstrating overall improved financial performance.
(Profit) Loss Attributable to Noncontrolling Interests
Amounts related to noncontrolling interests were negligible and largely stable at near zero, indicating minimal effect on reported earnings attributable to common stockholders.
Profit Attributable to Common Stockholders
Profit attributable to common stockholders more than doubled from 7.68% in 2020 to 17.59% in 2024, reflecting strong enhancement in net profitability and shareholder value over this timeframe.