Analysis of Geographic Areas
Caterpillar Inc. operates in 2 regions: Inside United States and Outside United States.
Area Asset Turnover
Caterpillar Inc., asset turnover by geographic area
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inside United States | 3.73 | 4.05 | 3.46 | 2.74 | 2.25 |
| Outside United States | 6.64 | 7.17 | 7.03 | 6.27 | 4.94 |
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).
- Inside United States Asset Turnover
- The asset turnover ratio within the United States exhibits an overall upward trend from 2.25 in 2020 to a peak of 4.05 in 2023, indicating progressively improved efficiency in utilizing assets to generate revenue in this region. However, there is a slight decline observed in 2024, dropping to 3.73, which may suggest a marginal slowdown in asset utilization efficiency or changes in operational conditions during the latest period.
- Outside United States Asset Turnover
- The asset turnover ratio outside the United States demonstrates a consistent and strong growth trajectory from 4.94 in 2020 to 7.17 in 2023. This indicates notable improvements in the effectiveness of asset use internationally over the period. Similar to the U.S. segment, there is a minor decrease to 6.64 in 2024, yet the ratio remains substantially higher than in previous years, maintaining a comparatively high level of operational efficiency.
- Comparative Observations
- The asset turnover ratios outside the United States are significantly higher than those inside the United States throughout the five-year span, reflecting superior asset utilization efficiency internationally. Both regions experience their highest turnover ratios in 2023, followed by a slight reduction in 2024. This pattern may reflect broader economic or industry-specific developments affecting asset utilization. Overall, the data depicts strong asset management capabilities, especially in foreign operations, with a need to monitor the recent minor downturns to understand underlying causes.
Area Asset Turnover: Inside United States
Caterpillar Inc.; Inside United States; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| External sales and revenues | 30,624) | 31,053) | 24,368) | 19,298) | 16,269) |
| Property, plant and equipment, net | 8,213) | 7,658) | 7,042) | 7,035) | 7,242) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 3.73 | 4.05 | 3.46 | 2.74 | 2.25 |
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).
1 2024 Calculation
Area asset turnover = External sales and revenues ÷ Property, plant and equipment, net
= 30,624 ÷ 8,213 = 3.73
- External Sales and Revenues
- There is a clear upward trend in external sales and revenues from 2020 to 2023, with values increasing from 16,269 million US dollars in 2020 to a peak of 31,053 million US dollars in 2023. However, in 2024, a slight decrease is observed, with revenues reducing to 30,624 million US dollars, indicating a potential stabilization or minor downturn after a period of consistent growth.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment remains relatively stable over the five-year period, starting at 7,242 million US dollars in 2020, experiencing a slight decline by 2021 to 7,035 million US dollars, followed by a modest recovery and increase to 8,213 million US dollars in 2024. This suggests a gradual investment in fixed assets with moderate fluctuations.
- Area Asset Turnover Ratio
- The area asset turnover ratio, which measures efficiency in generating sales from assets, shows a strong increasing trend from 2.25 in 2020 to a peak of 4.05 in 2023. This sharp increase indicates improved utilization of assets to drive revenue. However, in 2024, there is a slight decline to 3.73, suggesting a minor reduction in efficiency or asset productivity relative to the previous year.
- Overall Insights
- Between 2020 and 2023, there is significant growth in external sales accompanied by increased efficiency in asset usage, as reflected in the rising asset turnover ratio. Fixed asset values exhibit minor volatility but ultimately show a gradual upward trend. The data for 2024 indicates a marginal pullback in both revenue and asset turnover, which could imply market saturation, increased competition, or adjustments in operational efficiency.
Area Asset Turnover: Outside United States
Caterpillar Inc.; Outside United States; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| External sales and revenues | 34,185) | 36,007) | 35,059) | 31,673) | 25,479) |
| Property, plant and equipment, net | 5,148) | 5,022) | 4,986) | 5,055) | 5,159) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 6.64 | 7.17 | 7.03 | 6.27 | 4.94 |
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).
1 2024 Calculation
Area asset turnover = External sales and revenues ÷ Property, plant and equipment, net
= 34,185 ÷ 5,148 = 6.64
- External Sales and Revenues
- There is a general upward trend in external sales and revenues outside the United States from 2020 to 2023, increasing from 25,479 million US dollars in 2020 to a peak of 36,007 million US dollars in 2023. However, this is followed by a decline in 2024, where revenues decrease to 34,185 million US dollars. Despite this drop, the 2024 figure remains higher than that of 2020, indicating overall growth over the five-year period.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment shows some variability but generally remains relatively stable over the five-year period. Starting at 5,159 million US dollars in 2020, it slightly declines over the next two years, reaching 4,986 million US dollars in 2022, then experiences a minor recovery to 5,148 million US dollars by 2024. This suggests that there was little significant investment or divestment activity in these assets in the geographic area during this timeframe.
- Area Asset Turnover
- The area asset turnover ratio exhibits a consistent upward trajectory from 2020 through 2023, increasing from 4.94 to 7.17. This indicates enhanced efficiency in generating revenue relative to the assets employed. However, in 2024, this ratio declines to 6.64, which, while lower than the previous year, still represents an improvement compared to the 2020 baseline. The peak in 2023 correlates with the highest revenue figure, suggesting maximized asset productivity during that year.
External sales and revenues
Caterpillar Inc., external sales and revenues by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inside United States | 30,624) | 31,053) | 24,368) | 19,298) | 16,269) |
| Outside United States | 34,185) | 36,007) | 35,059) | 31,673) | 25,479) |
| Total | 64,809) | 67,060) | 59,427) | 50,971) | 41,748) |
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).
- Sales Inside United States
- Sales within the United States exhibited a consistent upward trend from 2020 to 2023, increasing from $16,269 million to $31,053 million. This represents nearly a doubling over this four-year period. In 2024, there was a slight decrease in sales to $30,624 million.
- Sales Outside United States
- Sales generated outside the United States also demonstrated growth from 2020 to 2023, rising from $25,479 million to $36,007 million. However, similar to domestic sales, there was a decline in 2024 to $34,185 million. The growth rate outside the U.S. was positive but less steep in comparison to inside U.S. sales.
- Total Sales
- Total sales increased steadily from $41,748 million in 2020 to $67,060 million in 2023, with a compound growth that reflects strong overall performance. The total sales in 2024 declined slightly to $64,809 million, mirroring the decreases seen in both geographic segments.
- Overall Observations
- Both domestic and international sales showed consistent growth over the initial four-year span, indicating strong market demand or expanded operations. The slight downturn in 2024 in both regions suggests possible market conditions or other external factors impacting revenues. Despite this decrease, total sales in 2024 remain significantly higher than in 2020, indicating sustained growth over the five-year period.
Property, plant and equipment, net
Caterpillar Inc., property, plant and equipment, net by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inside United States | 8,213) | 7,658) | 7,042) | 7,035) | 7,242) |
| Outside United States | 5,148) | 5,022) | 4,986) | 5,055) | 5,159) |
| Total | 13,361) | 12,680) | 12,028) | 12,090) | 12,401) |
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).
The data on property, plant, and equipment (net) for different geographic areas exhibits certain discernible patterns over the five-year period.
- Inside United States
- The net value fluctuated slightly around the 7000 million USD mark in the initial years, showing a decrease from 7242 million in 2020 to 7035 million in 2021. A marginal increase occurred in 2022 to 7042 million, followed by a more significant rise in 2023 to 7658 million. The upward trend continued into 2024, reaching 8213 million, indicating steady growth in assets within the United States during the latter part of the period.
- Outside United States
- The values declined gradually from 5159 million in 2020 to 4986 million in 2022, reflecting a slow contraction of property, plant, and equipment outside the United States. This was followed by minor recovery phases with 5022 million in 2023 and 5148 million in 2024, though still not surpassing the initial 2020 level. This suggests a cautious or more stable investment pattern internationally with limited expansion.
- Total
- The total net property, plant, and equipment showed an initial decline from 12401 million in 2020 to 12028 million in 2022, paralleling trends seen in both geographic segments. However, from 2023 onward, total assets increased noticeably, reaching 12680 million and then 13361 million in 2024. This growth is driven predominantly by the gains recorded within the United States, outweighing the relatively stagnant international figures.
In summary, the overall net property, plant, and equipment attest to a rebound after a period of stagnation and slight decline, with significant expansion domestic to the United States. Outside the United States, the asset base has been relatively flat with minor variations, contributing less to overall growth in recent years.