Stock Analysis on Net
Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Caterpillar Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Machinery, Power & Energy 0.00 0.00 0.00 0.00 0.01
Financial Products 5.59 5.01 5.31 7.27 6.52
Short-term borrowings 5.59% 5.01% 5.31% 7.27% 6.53%
Accounts payable 9.10 8.75 9.04 10.60 9.85
Accrued expenses 5.67 5.97 5.67 4.98 4.54
Accrued wages, salaries and employee benefits 2.59 2.72 3.15 2.82 2.71
Customer advances 3.36 2.65 2.21 2.27 1.31
Dividends payable 0.71 0.77 0.74 0.76 0.72
Other current liabilities 2.84 3.31 3.57 3.28 2.72
Machinery, Power & Energy 0.04 0.05 1.19 0.15 0.05
Financial Products 7.19 7.54 8.82 6.35 7.62
Long-term debt due within one year 7.22% 7.59% 10.02% 6.49% 7.67%
Current liabilities 37.08% 36.77% 39.70% 38.48% 36.05%
Machinery, Power & Energy 10.83 9.76 9.81 11.59 11.77
Financial Products 20.31 21.41 18.17 19.79 19.67
Long-term debt due after one year 31.14% 31.16% 27.98% 31.38% 31.44%
Liability for postemployment benefits 3.89 4.28 4.68 5.13 6.75
Other liabilities 6.26 5.57 5.34 5.62 5.80
Noncurrent liabilities 41.29% 41.02% 38.00% 42.13% 44.00%
Total liabilities 78.38% 77.79% 77.70% 80.61% 80.05%
Common stock of $1.00 par value, at paid-in amount 7.28 7.91 7.32 8.01 7.73
Treasury stock, at cost -50.25 -50.51 -41.54 -38.74 -33.39
Profit employed in the business 66.39 67.63 58.59 53.10 47.45
Accumulated other comprehensive loss -1.80 -2.82 -2.08 -3.00 -1.88
Equity attributable to common shareholders 21.62% 22.21% 22.28% 19.37% 19.91%
Noncontrolling interests 0.00 0.00 0.01 0.03 0.04
Total stockholders’ equity 21.62% 22.21% 22.30% 19.39% 19.95%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2025-12-31), 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).

The composition of liabilities and stockholders’ equity exhibited several notable shifts between 2021 and 2025. Overall, total liabilities consistently represented a significant portion, approximately 80%, of the total, while stockholders’ equity accounted for the remaining 20%. However, within these broad categories, specific line items demonstrated distinct trends.

Current Liabilities
Current liabilities as a percentage of the total remained relatively stable, fluctuating between 36.05% and 39.70% over the period. Accounts payable and accrued expenses were substantial components of current liabilities, both showing modest variations. Customer advances experienced a more pronounced increase, rising from 1.31% in 2021 to 3.36% in 2025, potentially indicating changing payment terms or increased upfront collections. Short-term borrowings decreased significantly from 6.53% to 5.59%.
Noncurrent Liabilities
Noncurrent liabilities demonstrated a decreasing trend as a percentage of the total, moving from 44.00% in 2021 to 41.29% in 2025. Long-term debt due after one year remained the largest component, consistently above 30%, but also showed a slight decline. The liability for postemployment benefits decreased steadily throughout the period, suggesting potential changes in benefit obligations or accounting adjustments. Machinery, Power & Energy liabilities increased significantly in 2023 before decreasing again.
Total Liabilities
Total liabilities remained consistently high, fluctuating around 80% of the total. The slight variations observed suggest a dynamic balance between current and noncurrent obligations. The proportion of total liabilities decreased slightly in 2023, then stabilized.
Stockholders’ Equity
Total stockholders’ equity remained relatively stable, around 20% of the total. A significant feature was the substantial negative balance of treasury stock, which increased in magnitude from -33.39% in 2021 to -50.25% in 2025. This indicates considerable share repurchase activity. Profit employed in the business increased substantially from 47.45% to 67.63% in 2024, before decreasing to 66.39% in 2025. Accumulated other comprehensive loss remained consistently negative, but relatively small in comparison to other equity components.
Common Stock & Equity Attributable to Common Shareholders
Common stock remained a relatively small percentage of the total, fluctuating around 8%. Equity attributable to common shareholders showed a slight increase over the period, but remained below 23%. Noncontrolling interests were minimal and decreased to zero by 2024.

In summary, the balance sheet structure indicates a reliance on liabilities for funding, coupled with active share repurchase programs as evidenced by the growing treasury stock balance. The increasing profit employed in the business suggests improved operational performance, while the trends in specific liability accounts warrant further investigation to understand the underlying drivers.

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