Operating Profit Margin
since 2005
Calculation
Caterpillar Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating profit1 | ÷ | Sales of Machinery, Energy & Transportation1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 21.30% | = | 100 | × | 13,072) | ÷ | 61,363) |
| Dec 31, 2023 | 20.30% | = | 100 | × | 12,966) | ÷ | 63,869) |
| Dec 31, 2022 | 13.97% | = | 100 | × | 7,904) | ÷ | 56,574) |
| Dec 31, 2021 | 14.27% | = | 100 | × | 6,878) | ÷ | 48,188) |
| Dec 31, 2020 | 11.67% | = | 100 | × | 4,553) | ÷ | 39,022) |
| Dec 31, 2019 | 16.33% | = | 100 | × | 8,290) | ÷ | 50,755) |
| Dec 31, 2018 | 16.00% | = | 100 | × | 8,293) | ÷ | 51,822) |
| Dec 31, 2017 | 10.32% | = | 100 | × | 4,406) | ÷ | 42,676) |
| Dec 31, 2016 | 1.39% | = | 100 | × | 498) | ÷ | 35,773) |
| Dec 31, 2015 | 7.38% | = | 100 | × | 3,256) | ÷ | 44,147) |
| Dec 31, 2014 | 10.22% | = | 100 | × | 5,328) | ÷ | 52,142) |
| Dec 31, 2013 | 10.68% | = | 100 | × | 5,628) | ÷ | 52,694) |
| Dec 31, 2012 | 13.59% | = | 100 | × | 8,573) | ÷ | 63,068) |
| Dec 31, 2011 | 12.46% | = | 100 | × | 7,153) | ÷ | 57,392) |
| Dec 31, 2010 | 9.94% | = | 100 | × | 3,963) | ÷ | 39,867) |
| Dec 31, 2009 | 1.95% | = | 100 | × | 577) | ÷ | 29,540) |
| Dec 31, 2008 | 9.26% | = | 100 | × | 4,448) | ÷ | 48,044) |
| Dec 31, 2007 | 11.73% | = | 100 | × | 4,921) | ÷ | 41,962) |
| Dec 31, 2006 | 12.66% | = | 100 | × | 4,921) | ÷ | 38,869) |
| Dec 31, 2005 | 11.13% | = | 100 | × | 3,784) | ÷ | 34,006) |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The data indicates fluctuations and notable trends in operating profit, sales, and operating profit margin over the examined period. Each metric exhibits periods of growth, decline, and recovery, reflecting varying operational and market conditions.
- Operating Profit
- The operating profit demonstrated an overall upward trend despite significant volatility. From 2005 to 2008, the profit remained relatively stable around the 4,000 to 5,000 million US$ range, with a sharp decline in 2009 to 577 million US$. This drop is followed by a strong recovery and steady increase, peaking in 2013 and 2014 at over 8,000 million US$. Another pronounced decline occurred in 2015 and 2016, with profits dropping below 500 million US$ in 2016. Subsequently, operating profit recovered gradually, reaching its highest points in 2023 and 2024, surpassing 12,900 million US$. This suggests a cyclical pattern with severe impacts during economic downturns and robust growth phases during recoveries.
- Sales of Machinery, Energy & Transportation
- Sales figures showed a generally positive trend with intermittent periods of decline. Between 2005 and 2008, sales increased from 34,006 million US$ to above 48,000 million US$, indicating growth. However, 2009 saw a sharp decrease to 29,540 million US$, aligning with the operating profit fall. From 2010 onward, sales recovered and peaked around 2012 at over 63,000 million US$, followed by fluctuations that included declines in 2013, 2014, and 2015, mirroring the profit downturns. Post-2016, sales again trended upward, reaching peak levels near 63,869 million US$ in 2023, with a slight reduction in 2024 to approximately 61,363 million US$. These patterns reflect sensitivity to economic cycles with strong rebounds following downturns.
- Operating Profit Margin
- The operating profit margin exhibited considerable variability. It started at 11.13% in 2005, improved steadily to a high of 13.59% by 2012, then sharply declined to 1.39% in 2016, paralleling the sharp drop in operating profit. Afterward, the margin improved significantly, reaching 16% in 2018 and stabilizing in the mid-teens range between 2018 and 2022. Notably, the margin increased to over 20% in 2023 and 2024, indicating enhanced profitability relative to sales. Such movement implies improved operational efficiency or pricing power, especially in the more recent years.
In summary, the data reflects a cyclical pattern influenced by broader economic conditions, with significant downturns in 2009 and mid-2010s, followed by strong recovery phases. Profitability margins show resilience and improvement in the latter years, suggesting effective cost management or favorable market dynamics. Sales volumes, while fluctuating, generally trend upwards with recoveries post-downturns, supporting the growth in operating profit and margin seen in the most recent periods.
Comparison to Competitors
Caterpillar Inc., operating profit margin, long-term trends, comparison to competitors
| Caterpillar Inc. | Boeing Co. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|
| Dec 31, 2024 | 21.30% | -16.10% | 9.87% | 8.10% |
| Dec 31, 2023 | 20.30% | -0.99% | 12.59% | 5.17% |
| Dec 31, 2022 | 13.97% | -5.33% | 12.65% | 8.07% |
| Dec 31, 2021 | 14.27% | -4.66% | 13.61% | 7.70% |
| Dec 31, 2020 | 11.67% | -21.95% | 13.22% | -3.34% |
| Dec 31, 2019 | 16.33% | -2.58% | 14.29% | 11.64% |
| Dec 31, 2018 | 16.00% | 11.85% | 13.64% | 12.86% |
| Dec 31, 2017 | 10.32% | 11.01% | 11.60% | 14.49% |
| Dec 31, 2016 | 1.39% | 6.17% | 11.74% | 14.28% |
| Dec 31, 2015 | 7.38% | 7.74% | 11.78% | 13.00% |
| Dec 31, 2014 | 10.22% | 8.23% | 12.26% | 15.01% |
| Dec 31, 2013 | 10.68% | 7.58% | 9.93% | 14.70% |
| Dec 31, 2012 | 13.59% | 7.72% | 9.40% | 13.32% |
| Dec 31, 2011 | 12.46% | 8.50% | 8.56% | 13.92% |
| Dec 31, 2010 | 9.94% | 7.73% | 8.94% | 13.23% |
| Dec 31, 2009 | 1.95% | 3.07% | 9.88% | 12.33% |
| Dec 31, 2008 | 9.26% | 6.49% | 12.01% | 13.14% |
| Dec 31, 2007 | 11.73% | 8.78% | 10.81% | 13.08% |
| Dec 31, 2006 | 12.66% | 4.90% | 9.98% | 12.94% |
| Dec 31, 2005 | 11.13% | 5.13% | 8.02% | 12.26% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).