Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.

Solvency Ratios (Summary)
Debt to Equity
Debt to Equity (including Operating Lease Liability)
Debt to Capital
Debt to Capital (including Operating Lease Liability)
Debt to Assets
Debt to Assets (including Operating Lease Liability)
Financial Leverage
Interest Coverage
Fixed Charge Coverage

Caterpillar Inc., solvency ratios

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Debt Ratios
Debt to equity	2.42	2.58	2.60	2.55	2.80
Debt to equity (including operating lease liability)	2.46	2.62	2.60	2.55	2.80
Debt to capital	0.71	0.72	0.72	0.72	0.74
Debt to capital (including operating lease liability)	0.71	0.72	0.72	0.72	0.74
Debt to assets	0.47	0.48	0.47	0.45	0.49
Debt to assets (including operating lease liability)	0.48	0.49	0.47	0.45	0.49
Financial leverage	5.11	5.38	5.59	5.62	5.69
Coverage Ratios
Interest coverage	8.80	19.62	20.42	8.72	1.26
Fixed charge coverage	6.58	13.01	11.81	5.75	1.15

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-15).

Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Caterpillar Inc.’s debt to equity ratio improved from 2018 to 2019 and from 2019 to 2020.
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.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Caterpillar Inc.’s debt to capital ratio improved from 2018 to 2019 and from 2019 to 2020.
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.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Caterpillar Inc.’s debt to assets ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
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.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Caterpillar Inc.’s financial leverage ratio decreased from 2018 to 2019 and from 2019 to 2020.

Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Caterpillar Inc.’s interest coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Caterpillar Inc.’s fixed charge coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

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

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Short-term borrowings	2,015	5,166	5,723	4,837	7,303
Long-term debt due within one year	9,149	6,210	5,830	6,194	6,662
Long-term debt due after one year	25,999	26,281	25,000	23,847	22,818
Total debt	37,163	37,657	36,553	34,878	36,783

Equity attributable to common stockholders	15,331	14,588	14,039	13,697	13,137
Solvency Ratio
Debt to equity¹	2.42	2.58	2.60	2.55	2.80
Benchmarks
Debt to Equity, Competitors²
3M Co.	1.47	2.03	1.50	1.21	1.14
Boeing Co.	—	—	40.85	31.32	12.18
General Electric Co.	2.11	3.21	3.55	2.09	1.80
Honeywell International Inc.	1.28	0.87	0.89	1.04	0.81
Illinois Tool Works Inc.	2.55	2.56	2.27	1.82	1.84
Lockheed Martin Corp.	2.02	4.05	10.12	—	9.45
Raytheon Technologies Corp.	0.44	1.04	1.18	0.93	0.87
Debt to Equity, Sector
Capital Goods	1.87	2.31	2.22	1.87	1.68
Debt to Equity, Industry
Industrials	1.79	1.99	1.84	1.59	1.54

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-15).

¹ 2020 Calculation
Debt to equity = Total debt ÷ Equity attributable to common stockholders
= 37,163 ÷ 15,331 = 2.42

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.’s debt to equity ratio improved from 2018 to 2019 and from 2019 to 2020.

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

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Short-term borrowings	2,015	5,166	5,723	4,837	7,303
Long-term debt due within one year	9,149	6,210	5,830	6,194	6,662
Long-term debt due after one year	25,999	26,281	25,000	23,847	22,818
Total debt	37,163	37,657	36,553	34,878	36,783
Current operating lease liabilities (recognized in Other current liabilities)	163	173	—	—	—
Noncurrent operating lease liabilities (recognized in Other liabilities)	457	461	—	—	—
Total debt (including operating lease liability)	37,783	38,291	36,553	34,878	36,783

Equity attributable to common stockholders	15,331	14,588	14,039	13,697	13,137
Solvency Ratio
Debt to equity (including operating lease liability)¹	2.46	2.62	2.60	2.55	2.80
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors²
3M Co.	1.54	2.12	1.50	1.21	1.14
Boeing Co.	—	—	40.85	31.32	12.18
General Electric Co.	2.20	3.32	3.55	2.09	1.80
Honeywell International Inc.	1.32	0.90	0.89	1.04	0.81
Illinois Tool Works Inc.	2.61	2.62	2.27	1.82	1.84
Lockheed Martin Corp.	2.21	4.40	10.12	—	9.45
Raytheon Technologies Corp.	0.47	1.11	1.18	0.93	0.87
Debt to Equity (including Operating Lease Liability), Sector
Capital Goods	1.93	2.41	2.22	1.87	1.68
Debt to Equity (including Operating Lease Liability), Industry
Industrials	1.93	2.08	1.84	1.59	1.54

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-15).

¹ 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity attributable to common stockholders
= 37,783 ÷ 15,331 = 2.46

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.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

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

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Short-term borrowings	2,015	5,166	5,723	4,837	7,303
Long-term debt due within one year	9,149	6,210	5,830	6,194	6,662
Long-term debt due after one year	25,999	26,281	25,000	23,847	22,818
Total debt	37,163	37,657	36,553	34,878	36,783
Equity attributable to common stockholders	15,331	14,588	14,039	13,697	13,137
Total capital	52,494	52,245	50,592	48,575	49,920
Solvency Ratio
Debt to capital¹	0.71	0.72	0.72	0.72	0.74
Benchmarks
Debt to Capital, Competitors²
3M Co.	0.60	0.67	0.60	0.55	0.53
Boeing Co.	1.40	1.46	0.98	0.97	0.92
General Electric Co.	0.68	0.76	0.78	0.68	0.64
Honeywell International Inc.	0.56	0.46	0.47	0.51	0.45
Illinois Tool Works Inc.	0.72	0.72	0.69	0.64	0.65
Lockheed Martin Corp.	0.67	0.80	0.91	1.05	0.90
Raytheon Technologies Corp.	0.31	0.51	0.54	0.48	0.46
Debt to Capital, Sector
Capital Goods	0.65	0.70	0.69	0.65	0.63
Debt to Capital, Industry
Industrials	0.64	0.67	0.65	0.61	0.61

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-15).

¹ 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 37,163 ÷ 52,494 = 0.71

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.’s debt to capital ratio improved from 2018 to 2019 and from 2019 to 2020.

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

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Short-term borrowings	2,015	5,166	5,723	4,837	7,303
Long-term debt due within one year	9,149	6,210	5,830	6,194	6,662
Long-term debt due after one year	25,999	26,281	25,000	23,847	22,818
Total debt	37,163	37,657	36,553	34,878	36,783
Current operating lease liabilities (recognized in Other current liabilities)	163	173	—	—	—
Noncurrent operating lease liabilities (recognized in Other liabilities)	457	461	—	—	—
Total debt (including operating lease liability)	37,783	38,291	36,553	34,878	36,783
Equity attributable to common stockholders	15,331	14,588	14,039	13,697	13,137
Total capital (including operating lease liability)	53,114	52,879	50,592	48,575	49,920
Solvency Ratio
Debt to capital (including operating lease liability)¹	0.71	0.72	0.72	0.72	0.74
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors²
3M Co.	0.61	0.68	0.60	0.55	0.53
Boeing Co.	1.39	1.43	0.98	0.97	0.92
General Electric Co.	0.69	0.77	0.78	0.68	0.64
Honeywell International Inc.	0.57	0.47	0.47	0.51	0.45
Illinois Tool Works Inc.	0.72	0.72	0.69	0.64	0.65
Lockheed Martin Corp.	0.69	0.81	0.91	1.05	0.90
Raytheon Technologies Corp.	0.32	0.53	0.54	0.48	0.46
Debt to Capital (including Operating Lease Liability), Sector
Capital Goods	0.66	0.71	0.69	0.65	0.63
Debt to Capital (including Operating Lease Liability), Industry
Industrials	0.66	0.68	0.65	0.61	0.61

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-15).

¹ 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 37,783 ÷ 53,114 = 0.71

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.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

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

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Short-term borrowings	2,015	5,166	5,723	4,837	7,303
Long-term debt due within one year	9,149	6,210	5,830	6,194	6,662
Long-term debt due after one year	25,999	26,281	25,000	23,847	22,818
Total debt	37,163	37,657	36,553	34,878	36,783

Total assets	78,324	78,453	78,509	76,962	74,704
Solvency Ratio
Debt to assets¹	0.47	0.48	0.47	0.45	0.49
Benchmarks
Debt to Assets, Competitors²
3M Co.	0.40	0.46	0.40	0.37	0.36
Boeing Co.	0.42	0.20	0.12	0.12	0.11
General Electric Co.	0.30	0.34	0.36	0.36	0.37
Honeywell International Inc.	0.35	0.27	0.28	0.30	0.29
Illinois Tool Works Inc.	0.52	0.51	0.50	0.50	0.52
Lockheed Martin Corp.	0.24	0.27	0.31	0.31	0.30
Raytheon Technologies Corp.	0.20	0.31	0.34	0.28	0.27
Debt to Assets, Sector
Capital Goods	0.33	0.33	0.33	0.33	0.33
Debt to Assets, Industry
Industrials	0.34	0.35	0.34	0.33	0.33

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-15).

¹ 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 37,163 ÷ 78,324 = 0.47

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.’s debt to assets ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

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

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Short-term borrowings	2,015	5,166	5,723	4,837	7,303
Long-term debt due within one year	9,149	6,210	5,830	6,194	6,662
Long-term debt due after one year	25,999	26,281	25,000	23,847	22,818
Total debt	37,163	37,657	36,553	34,878	36,783
Current operating lease liabilities (recognized in Other current liabilities)	163	173	—	—	—
Noncurrent operating lease liabilities (recognized in Other liabilities)	457	461	—	—	—
Total debt (including operating lease liability)	37,783	38,291	36,553	34,878	36,783

Total assets	78,324	78,453	78,509	76,962	74,704
Solvency Ratio
Debt to assets (including operating lease liability)¹	0.48	0.49	0.47	0.45	0.49
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors²
3M Co.	0.42	0.48	0.40	0.37	0.36
Boeing Co.	0.43	0.21	0.12	0.12	0.11
General Electric Co.	0.31	0.35	0.36	0.36	0.37
Honeywell International Inc.	0.36	0.28	0.28	0.30	0.29
Illinois Tool Works Inc.	0.53	0.53	0.50	0.50	0.52
Lockheed Martin Corp.	0.26	0.29	0.31	0.31	0.30
Raytheon Technologies Corp.	0.21	0.33	0.34	0.28	0.27
Debt to Assets (including Operating Lease Liability), Sector
Capital Goods	0.34	0.34	0.33	0.33	0.33
Debt to Assets (including Operating Lease Liability), Industry
Industrials	0.37	0.36	0.34	0.33	0.33

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-15).

¹ 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 37,783 ÷ 78,324 = 0.48

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.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Caterpillar Inc., financial leverage calculation, comparison to benchmarks

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Total assets	78,324	78,453	78,509	76,962	74,704
Equity attributable to common stockholders	15,331	14,588	14,039	13,697	13,137
Solvency Ratio
Financial leverage¹	5.11	5.38	5.59	5.62	5.69
Benchmarks
Financial Leverage, Competitors²
3M Co.	3.68	4.44	3.73	3.29	3.20
Boeing Co.	—	—	346.19	260.09	110.16
General Electric Co.	7.13	9.40	9.98	5.88	4.82
Honeywell International Inc.	3.68	3.17	3.18	3.44	2.80
Illinois Tool Works Inc.	4.91	4.98	4.57	3.66	3.57
Lockheed Martin Corp.	8.43	15.20	32.19	—	31.64
Raytheon Technologies Corp.	2.25	3.34	3.49	3.27	3.25
Financial Leverage, Sector
Capital Goods	5.71	7.08	6.81	5.72	5.04
Financial Leverage, Industry
Industrials	5.24	5.77	5.43	4.78	4.64

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-15).

¹ 2020 Calculation
Financial leverage = Total assets ÷ Equity attributable to common stockholders
= 78,324 ÷ 15,331 = 5.11

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.’s financial leverage ratio decreased from 2018 to 2019 and from 2019 to 2020.

Caterpillar Inc., interest coverage calculation, comparison to benchmarks

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Profit (loss) attributable to common stockholders	2,998	6,093	6,147	754	(67)
Add: Net income attributable to noncontrolling interest	5	1	1	5	8
Add: Income tax expense	1,006	1,746	1,698	3,339	192
Add: Interest expense excluding Financial Products	514	421	404	531	505
Earnings before interest and tax (EBIT)	4,523	8,261	8,250	4,629	638
Solvency Ratio
Interest coverage¹	8.80	19.62	20.42	8.72	1.26
Benchmarks
Interest Coverage, Competitors²
3M Co.	13.68	13.75	21.00	24.44	36.44
Boeing Co.	-5.71	-2.19	25.39	28.90	19.19
General Electric Co.	2.59	1.27	-2.98	-0.81	2.80
Honeywell International Inc.	17.75	22.17	21.40	22.84	20.07
Illinois Tool Works Inc.	14.13	15.88	14.21	13.58	13.27
Lockheed Martin Corp.	14.93	12.09	9.74	9.09	8.37
Raytheon Technologies Corp.	-0.67	5.65	7.76	8.63	7.14
Interest Coverage, Sector
Capital Goods	2.77	5.39	4.55	5.34	6.12
Interest Coverage, Industry
Industrials	3.58	5.85	5.80	6.57	6.71

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-15).

¹ 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 4,523 ÷ 514 = 8.80

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.’s interest coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

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

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Profit (loss) attributable to common stockholders	2,998	6,093	6,147	754	(67)
Add: Net income attributable to noncontrolling interest	5	1	1	5	8
Add: Income tax expense	1,006	1,746	1,698	3,339	192
Add: Interest expense excluding Financial Products	514	421	404	531	505
Earnings before interest and tax (EBIT)	4,523	8,261	8,250	4,629	638
Add: Operating lease cost	204	232	322	331	375
Earnings before fixed charges and tax	4,727	8,493	8,572	4,960	1,013

Interest expense excluding Financial Products	514	421	404	531	505
Operating lease cost	204	232	322	331	375
Fixed charges	718	653	726	862	880
Solvency Ratio
Fixed charge coverage¹	6.58	13.01	11.81	5.75	1.15
Benchmarks
Fixed Charge Coverage, Competitors²
3M Co.	8.65	8.56	10.42	12.35	14.64
Boeing Co.	-4.75	-1.19	15.81	16.62	10.39
General Electric Co.	1.93	1.09	-1.77	-0.30	2.07
Honeywell International Inc.	11.49	14.06	11.30	10.85	9.89
Illinois Tool Works Inc.	9.48	10.84	9.91	9.61	9.12
Lockheed Martin Corp.	11.12	9.12	7.38	7.43	6.65
Raytheon Technologies Corp.	-0.24	4.31	6.03	6.44	5.61
Fixed Charge Coverage, Sector
Capital Goods	2.22	3.99	3.29	3.81	4.30
Fixed Charge Coverage, Industry
Industrials	2.61	3.95	3.72	4.12	4.25

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-15).

¹ 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 4,727 ÷ 718 = 6.58

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.’s fixed charge coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Caterpillar Inc. (NYSE:CAT)

Analysis of Solvency Ratios

Solvency Ratios (Summary)

Debt to Equity

Debt to Equity (including Operating Lease Liability)

Debt to Capital

Debt to Capital (including Operating Lease Liability)

Debt to Assets

Debt to Assets (including Operating Lease Liability)

Financial Leverage

Interest Coverage

Fixed Charge Coverage