Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Caterpillar Inc., solvency ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Debt Ratios
Debt to equity 2.29 2.42 2.58 2.60 2.55
Debt to equity (including operating lease liability) 2.33 2.46 2.62 2.60 2.55
Debt to capital 0.70 0.71 0.72 0.72 0.72
Debt to capital (including operating lease liability) 0.70 0.71 0.72 0.72 0.72
Debt to assets 0.46 0.47 0.48 0.47 0.45
Debt to assets (including operating lease liability) 0.46 0.48 0.49 0.47 0.45
Financial leverage 5.02 5.11 5.38 5.59 5.62
Coverage Ratios
Interest coverage 17.88 8.80 19.62 20.42 8.72
Fixed charge coverage 12.73 6.58 13.01 11.81 5.75

Based on: 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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Caterpillar Inc. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Caterpillar Inc. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Caterpillar Inc. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Caterpillar Inc. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Caterpillar Inc. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Caterpillar Inc. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Caterpillar Inc. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Caterpillar Inc. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Caterpillar Inc. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Debt to Equity

Caterpillar Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings 5,404 2,015 5,166 5,723 4,837
Long-term debt due within one year 6,352 9,149 6,210 5,830 6,194
Long-term debt due after one year 26,033 25,999 26,281 25,000 23,847
Total debt 37,789 37,163 37,657 36,553 34,878
 
Equity attributable to common shareholders 16,484 15,331 14,588 14,039 13,697
Solvency Ratio
Debt to equity1 2.29 2.42 2.58 2.60 2.55
Benchmarks
Debt to Equity, Competitors2
Boeing Co. 40.85
General Electric Co. 0.87 2.11 3.21 3.55 2.09
Honeywell International Inc. 1.06 1.28 0.87 0.89 1.04
Lockheed Martin Corp. 1.07 2.02 4.05 10.12
Northrop Grumman Corp. 0.99 1.42 1.57 1.76
Raytheon Technologies Corp. 0.43 0.44 1.04 1.18
Debt to Equity, Sector
Capital Goods 1.31 1.85 2.27 2.25
Debt to Equity, Industry
Industrials 1.66 2.18 2.16 2.07

Based on: 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).

1 2021 Calculation
Debt to equity = Total debt ÷ Equity attributable to common shareholders
= 37,789 ÷ 16,484 = 2.29

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Caterpillar Inc. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Equity (including Operating Lease Liability)

Caterpillar Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings 5,404 2,015 5,166 5,723 4,837
Long-term debt due within one year 6,352 9,149 6,210 5,830 6,194
Long-term debt due after one year 26,033 25,999 26,281 25,000 23,847
Total debt 37,789 37,163 37,657 36,553 34,878
Current operating lease liabilities (recognized in Other current liabilities) 158 163 173
Noncurrent operating lease liabilities (recognized in Other liabilities) 484 457 461
Total debt (including operating lease liability) 38,431 37,783 38,291 36,553 34,878
 
Equity attributable to common shareholders 16,484 15,331 14,588 14,039 13,697
Solvency Ratio
Debt to equity (including operating lease liability)1 2.33 2.46 2.62 2.60 2.55
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Boeing Co. 40.85
General Electric Co. 0.94 2.20 3.32 3.55 2.09
Honeywell International Inc. 1.11 1.32 0.90 0.89 1.04
Lockheed Martin Corp. 1.19 2.21 4.40 10.12
Northrop Grumman Corp. 1.13 1.57 1.75 1.76
Raytheon Technologies Corp. 0.46 0.47 1.11 1.18
Debt to Equity (including Operating Lease Liability), Sector
Capital Goods 1.39 1.93 2.38 2.25
Debt to Equity (including Operating Lease Liability), Industry
Industrials 1.87 2.41 2.35 2.13

Based on: 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).

1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity attributable to common shareholders
= 38,431 ÷ 16,484 = 2.33

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Caterpillar Inc. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital

Caterpillar Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings 5,404 2,015 5,166 5,723 4,837
Long-term debt due within one year 6,352 9,149 6,210 5,830 6,194
Long-term debt due after one year 26,033 25,999 26,281 25,000 23,847
Total debt 37,789 37,163 37,657 36,553 34,878
Equity attributable to common shareholders 16,484 15,331 14,588 14,039 13,697
Total capital 54,273 52,494 52,245 50,592 48,575
Solvency Ratio
Debt to capital1 0.70 0.71 0.72 0.72 0.72
Benchmarks
Debt to Capital, Competitors2
Boeing Co. 1.35 1.40 1.46 0.98
General Electric Co. 0.47 0.68 0.76 0.78 0.68
Honeywell International Inc. 0.51 0.56 0.46 0.47 0.51
Lockheed Martin Corp. 0.52 0.67 0.80 0.91
Northrop Grumman Corp. 0.50 0.59 0.61 0.64
Raytheon Technologies Corp. 0.30 0.31 0.51 0.54
Debt to Capital, Sector
Capital Goods 0.57 0.65 0.69 0.69
Debt to Capital, Industry
Industrials 0.62 0.69 0.68 0.67

Based on: 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).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 37,789 ÷ 54,273 = 0.70

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Caterpillar Inc. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital (including Operating Lease Liability)

Caterpillar Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings 5,404 2,015 5,166 5,723 4,837
Long-term debt due within one year 6,352 9,149 6,210 5,830 6,194
Long-term debt due after one year 26,033 25,999 26,281 25,000 23,847
Total debt 37,789 37,163 37,657 36,553 34,878
Current operating lease liabilities (recognized in Other current liabilities) 158 163 173
Noncurrent operating lease liabilities (recognized in Other liabilities) 484 457 461
Total debt (including operating lease liability) 38,431 37,783 38,291 36,553 34,878
Equity attributable to common shareholders 16,484 15,331 14,588 14,039 13,697
Total capital (including operating lease liability) 54,915 53,114 52,879 50,592 48,575
Solvency Ratio
Debt to capital (including operating lease liability)1 0.70 0.71 0.72 0.72 0.72
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Boeing Co. 1.34 1.39 1.43 0.98
General Electric Co. 0.49 0.69 0.77 0.78 0.68
Honeywell International Inc. 0.53 0.57 0.47 0.47 0.51
Lockheed Martin Corp. 0.54 0.69 0.81 0.91
Northrop Grumman Corp. 0.53 0.61 0.64 0.64
Raytheon Technologies Corp. 0.31 0.32 0.53 0.54
Debt to Capital (including Operating Lease Liability), Sector
Capital Goods 0.58 0.66 0.70 0.69
Debt to Capital (including Operating Lease Liability), Industry
Industrials 0.65 0.71 0.70 0.68

Based on: 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).

1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 38,431 ÷ 54,915 = 0.70

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Caterpillar Inc. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets

Caterpillar Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings 5,404 2,015 5,166 5,723 4,837
Long-term debt due within one year 6,352 9,149 6,210 5,830 6,194
Long-term debt due after one year 26,033 25,999 26,281 25,000 23,847
Total debt 37,789 37,163 37,657 36,553 34,878
 
Total assets 82,793 78,324 78,453 78,509 76,962
Solvency Ratio
Debt to assets1 0.46 0.47 0.48 0.47 0.45
Benchmarks
Debt to Assets, Competitors2
Boeing Co. 0.42 0.42 0.20 0.12
General Electric Co. 0.18 0.30 0.34 0.36 0.36
Honeywell International Inc. 0.30 0.35 0.27 0.28 0.30
Lockheed Martin Corp. 0.23 0.24 0.27 0.31
Northrop Grumman Corp. 0.30 0.34 0.34 0.38
Raytheon Technologies Corp. 0.20 0.20 0.31 0.34
Debt to Assets, Sector
Capital Goods 0.28 0.32 0.32 0.32
Debt to Assets, Industry
Industrials 0.32 0.35 0.34 0.34

Based on: 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).

1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 37,789 ÷ 82,793 = 0.46

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Caterpillar Inc. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets (including Operating Lease Liability)

Caterpillar Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings 5,404 2,015 5,166 5,723 4,837
Long-term debt due within one year 6,352 9,149 6,210 5,830 6,194
Long-term debt due after one year 26,033 25,999 26,281 25,000 23,847
Total debt 37,789 37,163 37,657 36,553 34,878
Current operating lease liabilities (recognized in Other current liabilities) 158 163 173
Noncurrent operating lease liabilities (recognized in Other liabilities) 484 457 461
Total debt (including operating lease liability) 38,431 37,783 38,291 36,553 34,878
 
Total assets 82,793 78,324 78,453 78,509 76,962
Solvency Ratio
Debt to assets (including operating lease liability)1 0.46 0.48 0.49 0.47 0.45
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Boeing Co. 0.43 0.43 0.21 0.12
General Electric Co. 0.19 0.31 0.35 0.36 0.36
Honeywell International Inc. 0.32 0.36 0.28 0.28 0.30
Lockheed Martin Corp. 0.26 0.26 0.29 0.31
Northrop Grumman Corp. 0.34 0.37 0.38 0.38
Raytheon Technologies Corp. 0.21 0.21 0.33 0.34
Debt to Assets (including Operating Lease Liability), Sector
Capital Goods 0.29 0.33 0.33 0.32
Debt to Assets (including Operating Lease Liability), Industry
Industrials 0.37 0.39 0.36 0.35

Based on: 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).

1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 38,431 ÷ 82,793 = 0.46

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Caterpillar Inc. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Financial Leverage

Caterpillar Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Total assets 82,793 78,324 78,453 78,509 76,962
Equity attributable to common shareholders 16,484 15,331 14,588 14,039 13,697
Solvency Ratio
Financial leverage1 5.02 5.11 5.38 5.59 5.62
Benchmarks
Financial Leverage, Competitors2
Boeing Co. 346.19
General Electric Co. 4.93 7.13 9.40 9.98 5.88
Honeywell International Inc. 3.47 3.68 3.17 3.18 3.44
Lockheed Martin Corp. 4.64 8.43 15.20 32.19
Northrop Grumman Corp. 3.29 4.20 4.66 4.60
Raytheon Technologies Corp. 2.21 2.25 3.34 3.49
Financial Leverage, Sector
Capital Goods 4.70 5.80 7.18 6.99
Financial Leverage, Industry
Industrials 5.11 6.23 6.45 6.13

Based on: 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).

1 2021 Calculation
Financial leverage = Total assets ÷ Equity attributable to common shareholders
= 82,793 ÷ 16,484 = 5.02

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Caterpillar Inc. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.

Interest Coverage

Caterpillar Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Profit attributable to common stockholders 6,489 2,998 6,093 6,147 754
Add: Net income attributable to noncontrolling interest 4 5 1 1 5
Add: Income tax expense 1,742 1,006 1,746 1,698 3,339
Add: Interest expense excluding Financial Products 488 514 421 404 531
Earnings before interest and tax (EBIT) 8,723 4,523 8,261 8,250 4,629
Solvency Ratio
Interest coverage1 17.88 8.80 19.62 20.42 8.72
Benchmarks
Interest Coverage, Competitors2
Boeing Co. -0.88 -5.71 -2.19 25.39
General Electric Co. -0.96 2.59 1.27 -2.98 -0.81
Honeywell International Inc. 22.09 17.75 22.17 21.40 22.84
Lockheed Martin Corp. 14.27 14.93 12.09 9.74
Northrop Grumman Corp. 17.08 7.29 5.83 7.66
Raytheon Technologies Corp. 4.71 -0.65 5.65 7.76
Interest Coverage, Sector
Capital Goods 4.59 2.16 4.72 3.81
Interest Coverage, Industry
Industrials 5.10 1.29 5.22 4.92

Based on: 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).

1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 8,723 ÷ 488 = 17.88

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Caterpillar Inc. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Fixed Charge Coverage

Caterpillar Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Profit attributable to common stockholders 6,489 2,998 6,093 6,147 754
Add: Net income attributable to noncontrolling interest 4 5 1 1 5
Add: Income tax expense 1,742 1,006 1,746 1,698 3,339
Add: Interest expense excluding Financial Products 488 514 421 404 531
Earnings before interest and tax (EBIT) 8,723 4,523 8,261 8,250 4,629
Add: Operating lease cost 214 204 232 322 331
Earnings before fixed charges and tax 8,937 4,727 8,493 8,572 4,960
 
Interest expense excluding Financial Products 488 514 421 404 531
Operating lease cost 214 204 232 322 331
Fixed charges 702 718 653 726 862
Solvency Ratio
Fixed charge coverage1 12.73 6.58 13.01 11.81 5.75
Benchmarks
Fixed Charge Coverage, Competitors2
Boeing Co. -0.64 -4.75 -1.19 15.81
General Electric Co. -0.22 1.93 1.09 -1.77 -0.30
Honeywell International Inc. 13.67 11.49 14.06 11.30 10.85
Lockheed Martin Corp. 9.95 11.12 9.12 7.38
Northrop Grumman Corp. 11.26 5.08 4.01 4.99
Raytheon Technologies Corp. 3.66 -0.22 4.31 6.03
Fixed Charge Coverage, Sector
Capital Goods 3.50 1.79 3.54 2.82
Fixed Charge Coverage, Industry
Industrials 3.39 1.15 3.32 2.99

Based on: 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).

1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 8,937 ÷ 702 = 12.73

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Caterpillar Inc. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.