Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

Analysis of Solvency Ratios

Microsoft Excel LibreOffice Calc

Solvency Ratios (Summary)

Caterpillar Inc., solvency ratios

Microsoft Excel LibreOffice Calc
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 LibreOffice Calc
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
3M Co. 1.16 1.47 2.03 1.50 1.21
Boeing Co. 40.85 31.32
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
Raytheon Technologies Corp. 0.43 0.44 1.04 1.18 0.93
Debt to Equity, Sector
Capital Goods 1.33 1.85 2.31 2.22 1.87
Debt to Equity, Industry
Industrials 1.61 2.13 2.01 1.89 1.61

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 LibreOffice Calc
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
3M Co. 1.22 1.54 2.12 1.50 1.21
Boeing Co. 40.85 31.32
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
Raytheon Technologies Corp. 0.46 0.47 1.11 1.18 0.93
Debt to Equity (including Operating Lease Liability), Sector
Capital Goods 1.39 1.92 2.40 2.22 1.87
Debt to Equity (including Operating Lease Liability), Industry
Industrials 1.81 2.35 2.18 1.97 1.61

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 LibreOffice Calc
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
3M Co. 0.54 0.60 0.67 0.60 0.55
Boeing Co. 1.35 1.40 1.46 0.98 0.97
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 1.05
Raytheon Technologies Corp. 0.30 0.31 0.51 0.54 0.48
Debt to Capital, Sector
Capital Goods 0.57 0.65 0.70 0.69 0.65
Debt to Capital, Industry
Industrials 0.62 0.68 0.67 0.65 0.62

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 LibreOffice Calc
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
3M Co. 0.55 0.61 0.68 0.60 0.55
Boeing Co. 1.34 1.39 1.43 0.98 0.97
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 1.05
Raytheon Technologies Corp. 0.31 0.32 0.53 0.54 0.48
Debt to Capital (including Operating Lease Liability), Sector
Capital Goods 0.58 0.66 0.71 0.69 0.65
Debt to Capital (including Operating Lease Liability), Industry
Industrials 0.64 0.70 0.69 0.66 0.62

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 LibreOffice Calc
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
3M Co. 0.37 0.40 0.46 0.40 0.37
Boeing Co. 0.42 0.42 0.20 0.12 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 0.31
Raytheon Technologies Corp. 0.20 0.20 0.31 0.34 0.28
Debt to Assets, Sector
Capital Goods 0.28 0.32 0.32 0.32 0.32
Debt to Assets, Industry
Industrials 0.32 0.35 0.33 0.33 0.33

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 LibreOffice Calc
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
3M Co. 0.39 0.42 0.48 0.40 0.37
Boeing Co. 0.43 0.43 0.21 0.12 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 0.31
Raytheon Technologies Corp. 0.21 0.21 0.33 0.34 0.28
Debt to Assets (including Operating Lease Liability), Sector
Capital Goods 0.30 0.33 0.34 0.32 0.32
Debt to Assets (including Operating Lease Liability), Industry
Industrials 0.36 0.39 0.36 0.34 0.33

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 LibreOffice Calc
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
3M Co. 3.13 3.68 4.44 3.73 3.29
Boeing Co. 346.19 260.09
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
Raytheon Technologies Corp. 2.21 2.25 3.34 3.49 3.27
Financial Leverage, Sector
Capital Goods 4.67 5.73 7.13 6.88 5.79
Financial Leverage, Industry
Industrials 5.00 6.11 6.04 5.74 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
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 LibreOffice Calc
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
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
3M Co. 15.78 13.68 13.75 21.00 24.44
Boeing Co. -0.88 -5.71 -2.19 25.39 28.90
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 9.09
Raytheon Technologies Corp. 4.63 -0.67 5.65 7.76 8.63
Interest Coverage, Sector
Capital Goods 4.39 2.51 5.12 4.26 5.07
Interest Coverage, Industry
Industrials 5.36 1.20 5.82 5.63 6.47

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 LibreOffice Calc
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
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
3M Co. 9.94 8.65 8.56 10.42 12.35
Boeing Co. -0.64 -4.75 -1.19 15.81 16.62
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 7.43
Raytheon Technologies Corp. 3.62 -0.24 4.31 6.03 6.44
Fixed Charge Coverage, Sector
Capital Goods 3.35 2.03 3.81 3.10 3.63
Fixed Charge Coverage, Industry
Industrials 3.56 1.09 3.65 3.41 3.67

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
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.