Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
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Caterpillar Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity
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.