Caterpillar Inc. (CAT)
The income statement (statement of earnings) reports on the performance of Caterpillar Inc., the result of its operating activities.
The assets reports major classes and amounts of resources owned or controlled by Caterpillar Inc..
The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.
The cash flow statement provides information about Caterpillar Inc.’s cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on Caterpillar Inc.’s balance sheet.
Common-Size Financial Statements
Income statement components (revenues and expenses) shown as percentage of total sales.
Assets components shown as percentage of total assets.
Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.
Analysis of Financial Ratios
Evaluates revenues and output generated by the Caterpillar Inc.’s assets. Operating performance ratios describe the relationship between the Caterpillar Inc.’s level of operations and the assets needed to sustain operating activities.
Measures how efficiently Caterpillar Inc. generates revenues from its investments in fixed or total assets.
Measures the adequacy of a Caterpillar Inc.’s cash resources to meet its near-term cash obligations.
Examines Caterpillar Inc.’s capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.
Measures the income of Caterpillar Inc. relative to its revenues and invested capital.
An approach to decomposing Caterpillar Inc.’s return on equity, return on assets, and net profit margin ratio as the product of other financial ratios.
Relative valuation technique determine the value of Caterpillar Inc. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock’s value, such as earnings, book value, and sales.