Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Caterpillar Inc., solvency ratios
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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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. |