Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Caterpillar Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Profit of consolidated and affiliated companies	10,788)	10,332)	6,704)	6,493)	3,003)
Depreciation and amortization	2,153)	2,144)	2,219)	2,352)	2,432)
Actuarial (gain) loss on pension and postretirement benefits	(154)	(97)	(606)	(833)	383)
Benefit for deferred income taxes	(621)	(592)	(377)	(383)	(74)
Loss on divestiture	164)	572)	—)	—)	—)
Goodwill impairment charge	—)	—)	925)	—)	—)
Other	564)	375)	701)	216)	1,000)
Receivables, trade and other	(160)	(437)	(220)	(1,259)	1,442)
Inventories	(414)	(364)	(2,589)	(2,586)	(34)
Accounts payable	(282)	(754)	798)	2,041)	98)
Accrued expenses	191)	796)	317)	196)	(366)
Accrued wages, salaries and employee benefits	(363)	486)	90)	1,107)	(544)
Customer advances	370)	80)	768)	34)	(126)
Other assets, net	(97)	(95)	(210)	(97)	(201)
Other liabilities, net	(104)	439)	(754)	(83)	(686)
Changes in assets and liabilities, net of acquisitions and divestitures	(859)	151)	(1,800)	(647)	(417)
Adjustments to reconcile profit to net cash provided by operating activities	1,247)	2,553)	1,062)	705)	3,324)
Net cash provided by operating activities	12,035)	12,885)	7,766)	7,198)	6,327)
Capital expenditures, excluding equipment leased to others	(1,988)	(1,597)	(1,296)	(1,093)	(978)
Expenditures for equipment leased to others	(1,227)	(1,495)	(1,303)	(1,379)	(1,137)
Proceeds from disposals of leased assets and property, plant and equipment	722)	781)	830)	1,265)	772)
Additions to finance receivables	(15,409)	(15,161)	(13,239)	(13,002)	(12,385)
Collections of finance receivables	13,608)	14,034)	13,177)	12,430)	12,646)
Proceeds from sale of finance receivables	83)	63)	57)	51)	42)
Investments and acquisitions, net of cash acquired	(34)	(75)	(88)	(490)	(111)
Proceeds from sale of businesses and investments, net of cash sold	(61)	(4)	1)	36)	25)
Proceeds from maturities and sale of securities	3,155)	1,891)	2,383)	785)	345)
Investments in securities	(1,495)	(4,405)	(3,077)	(1,766)	(638)
Other, net	193)	97)	14)	79)	(66)
Net cash used for investing activities	(2,453)	(5,871)	(2,541)	(3,084)	(1,485)
Dividends paid	(2,646)	(2,563)	(2,440)	(2,332)	(2,243)
Common stock issued, including treasury shares reissued	20)	12)	51)	135)	229)
Payments to purchase common stock	(7,697)	(4,975)	(4,230)	(2,668)	(1,130)
Excise tax paid on purchases of common stock	(40)	—)	—)	—)	—)
Machinery, Energy & Transportation	—)	—)	—)	494)	1,991)
Financial Products	10,283)	8,257)	6,674)	6,495)	8,440)
Proceeds from debt issued, original maturities greater than three months	10,283)	8,257)	6,674)	6,989)	10,431)
Machinery, Energy & Transportation	(1,032)	(106)	(25)	(1,919)	(26)
Financial Products	(8,284)	(6,212)	(7,703)	(7,877)	(8,211)
Payments on debt, original maturities greater than three months	(9,316)	(6,318)	(7,728)	(9,796)	(8,237)
Short-term borrowings, net, original maturities three months or less	(168)	(1,345)	402)	3,488)	(2,804)
Other, net	(1)	—)	(10)	(4)	(1)
Net cash used for financing activities	(9,565)	(6,932)	(7,281)	(4,188)	(3,755)
Effect of exchange rate changes on cash	(106)	(110)	(194)	(29)	(13)
Increase (decrease) in cash, cash equivalents and restricted cash	(89)	(28)	(2,250)	(103)	1,074)
Cash, cash equivalents and restricted cash at beginning of period	6,985)	7,013)	9,263)	9,366)	8,292)
Cash, cash equivalents and restricted cash at end of period	6,896)	6,985)	7,013)	9,263)	9,366)

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).

Profitability and Income Trends: The profit of consolidated and affiliated companies exhibited a consistent upward trend over the five-year period, increasing from $3,003 million in 2020 to $10,788 million in 2024. This strong growth indicates improved operational performance and profitability. However, goodwill impairment charges appeared significantly in 2022 at $925 million but were absent in other years, suggesting a specific one-time write-down that year. Losses on divestiture emerged in 2023 and 2024, indicating some financial setbacks related to asset sales during these years.
Depreciation and Amortization: Depreciation and amortization expenses showed a gradual decrease from $2,432 million in 2020 to $2,153 million in 2024. This steady decline may reflect a reduction in the carrying value of depreciable assets or changes in asset composition.
Pension and Deferred Tax Items: Actuarial gains and losses on pension and postretirement benefits moved from a $383 million loss in 2020 to consistent actuarial gains in subsequent years, reducing the pension-related expense burden. The benefit for deferred income taxes increased in magnitude, from a $74 million benefit in 2020 to a $621 million benefit in 2024, indicating a growing positive impact from deferred tax positions on net income.
Working Capital and Asset/Liability Changes: Significant fluctuations in working capital components are observed. Trade receivables and inventories generally exhibited negative changes, suggesting inventory depletion and decreases in receivables, which can enhance liquidity. Accounts payable and accrued liabilities showed volatility, with increases and decreases fluctuating year to year. Net changes in assets and liabilities were negative in most years, with a notable drop in 2022 (-$1,800 million), implying the absorption of cash into working capital during that period, followed by positive change in 2023 and a substantial negative change again in 2024.
Cash Flow from Operating Activities: Net cash provided by operating activities increased significantly from $6,327 million in 2020 to a peak of $12,885 million in 2023, followed by a slight decline to $12,035 million in 2024. The adjustments to reconcile profit to net cash provided remained positive, supporting strong operational cash generation. This trend aligns with improved profitability over the period.
Investing Activities: Capital expenditures rose steadily from $978 million in 2020 to $1,988 million in 2024, reflecting increased investment in property, plant, and equipment. Expenditures for equipment leased to others initially increased until 2023 and then decreased in 2024. Proceeds from disposals of leased assets and property declined gradually. Net cash used for investing activities was negative throughout, showing the company's continuous cash outlay for growth and asset management, though the magnitude decreased significantly in 2024 compared to 2023.
Financing Activities: Dividend payments consistently increased over the period, from $2,243 million in 2020 to $2,646 million in 2024, indicating steady returns to shareholders. Payments to purchase common stock rose sharply, especially in 2024 ($7,697 million), reflecting aggressive share repurchase activity. Issuance of common stock was relatively minor and decreased over time. Net cash used for financing activities generally intensified, reaching $9,565 million in 2024 after peaking in previous years, largely driven by repurchases and dividend payments.
Debt and Borrowings: Proceeds from debt issuance were closely aligned with those from financial products and remained stable around $6,674 million to $10,283 million, suggesting sustained access to long-term financing. Payments on debt fluctuated but showed an overall increasing trend in payouts, peaking at $9,316 million in 2024. Short-term borrowings net values varied significantly, with positive inflows in 2021 and 2022 and outflows in 2023 and 2024, indicating shifts in short-term liquidity management.
Cash and Cash Equivalents: Cash and cash equivalents at the beginning and end of periods decreased steadily from $8,292 million at the start of 2020 to $6,896 million at end of 2024. Despite strong operational cash flow, the net decrease in cash was driven by investing and financing activities combined with minor negative impacts from exchange rate changes. The modest reductions in liquid assets might reflect increased capital investment and shareholder returns.
Other Observations: Investments in securities increased notably in 2023 but decreased the following year, reflecting changes in investment portfolio management. Proceeds from sale of finance receivables increased steadily, supporting liquidity. Other assets and liabilities showed minor fluctuations, consistent with normal operational variability.

Download chart

Caterpillar Inc. (NYSE:CAT)

Cash Flow Statement