Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Caterpillar Inc. (NYSE:CAT)

Analysis of Solvency Ratios

Beginner level

Solvency Ratios (Summary)

Caterpillar Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Debt Ratios
Debt to equity 2.58 2.60 2.55 2.80 2.57
Debt to equity (including operating lease liability) 2.62 2.60 2.55 2.80 2.57
Debt to capital 0.72 0.72 0.72 0.74 0.72
Debt to capital (including operating lease liability) 0.72 0.72 0.72 0.74 0.72
Debt to assets 0.48 0.47 0.45 0.49 0.49
Debt to assets (including operating lease liability) 0.49 0.47 0.45 0.49 0.49
Financial leverage 5.38 5.59 5.62 5.69 5.30
Coverage Ratios
Interest coverage 19.62 20.42 8.72 1.26 6.63
Fixed charge coverage 13.01 11.81 5.75 1.15 4.25

Based on: 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), 10-K (filing date: 2016-02-16).

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 deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.
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 deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Caterpillar Inc.’s debt to assets ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Caterpillar Inc.’s financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Caterpillar Inc.’s interest coverage ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.

Debt to Equity

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings 5,166  5,723  4,837  7,303  6,967 
Long-term debt due within one year 6,210  5,830  6,194  6,662  5,879 
Long-term debt due after one year 26,281  25,000  23,847  22,818  25,247 
Total debt 37,657  36,553  34,878  36,783  38,093 
 
Equity attributable to common stockholders 14,588  14,039  13,697  13,137  14,809 
Solvency Ratio
Debt to equity1 2.58 2.60 2.55 2.80 2.57
Benchmarks
Debt to Equity, Competitors2
Illinois Tool Works Inc. 2.56 2.27 1.82 1.84 1.42
Debt to Equity, Sector
Industrial Engineering 2.58 2.54 2.36 2.57 2.27
Debt to Equity, Industry
Industrials 1.74 1.71 1.50 1.40 1.38

Based on: 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), 10-K (filing date: 2016-02-16).

1 2019 Calculation
Debt to equity = Total debt ÷ Equity attributable to common stockholders
= 37,657 ÷ 14,588 = 2.58

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 deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings 5,166  5,723  4,837  7,303  6,967 
Long-term debt due within one year 6,210  5,830  6,194  6,662  5,879 
Long-term debt due after one year 26,281  25,000  23,847  22,818  25,247 
Total debt 37,657  36,553  34,878  36,783  38,093 
Current operating lease liabilities (recognized in Other current liabilities) 173  —  —  —  — 
Noncurrent operating lease liabilities (recognized in Other liabilities) 461  —  —  —  — 
Total debt (including operating lease liability) 38,291  36,553  34,878  36,783  38,093 
 
Equity attributable to common stockholders 14,588  14,039  13,697  13,137  14,809 
Solvency Ratio
Debt to equity (including operating lease liability)1 2.62 2.60 2.55 2.80 2.57
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Illinois Tool Works Inc. 2.62 2.27 1.82 1.84 1.42
Debt to Equity (including Operating Lease Liability), Sector
Industrial Engineering 2.62 2.54 2.36 2.57 2.27
Debt to Equity (including Operating Lease Liability), Industry
Industrials 1.84 1.71 1.50 1.40 1.38

Based on: 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), 10-K (filing date: 2016-02-16).

1 2019 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity attributable to common stockholders
= 38,291 ÷ 14,588 = 2.62

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 2017 to 2018 and from 2018 to 2019.

Debt to Capital

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings 5,166  5,723  4,837  7,303  6,967 
Long-term debt due within one year 6,210  5,830  6,194  6,662  5,879 
Long-term debt due after one year 26,281  25,000  23,847  22,818  25,247 
Total debt 37,657  36,553  34,878  36,783  38,093 
Equity attributable to common stockholders 14,588  14,039  13,697  13,137  14,809 
Total capital 52,245  50,592  48,575  49,920  52,902 
Solvency Ratio
Debt to capital1 0.72 0.72 0.72 0.74 0.72
Benchmarks
Debt to Capital, Competitors2
Illinois Tool Works Inc. 0.72 0.69 0.64 0.65 0.59
Debt to Capital, Sector
Industrial Engineering 0.72 0.72 0.70 0.72 0.69
Debt to Capital, Industry
Industrials 0.64 0.63 0.60 0.58 0.58

Based on: 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), 10-K (filing date: 2016-02-16).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 37,657 ÷ 52,245 = 0.72

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 deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings 5,166  5,723  4,837  7,303  6,967 
Long-term debt due within one year 6,210  5,830  6,194  6,662  5,879 
Long-term debt due after one year 26,281  25,000  23,847  22,818  25,247 
Total debt 37,657  36,553  34,878  36,783  38,093 
Current operating lease liabilities (recognized in Other current liabilities) 173  —  —  —  — 
Noncurrent operating lease liabilities (recognized in Other liabilities) 461  —  —  —  — 
Total debt (including operating lease liability) 38,291  36,553  34,878  36,783  38,093 
Equity attributable to common stockholders 14,588  14,039  13,697  13,137  14,809 
Total capital (including operating lease liability) 52,879  50,592  48,575  49,920  52,902 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.72 0.72 0.72 0.74 0.72
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Illinois Tool Works Inc. 0.72 0.69 0.64 0.65 0.59
Debt to Capital (including Operating Lease Liability), Sector
Industrial Engineering 0.72 0.72 0.70 0.72 0.69
Debt to Capital (including Operating Lease Liability), Industry
Industrials 0.65 0.63 0.60 0.58 0.58

Based on: 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), 10-K (filing date: 2016-02-16).

1 2019 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 38,291 ÷ 52,879 = 0.72

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 2017 to 2018 and from 2018 to 2019.

Debt to Assets

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings 5,166  5,723  4,837  7,303  6,967 
Long-term debt due within one year 6,210  5,830  6,194  6,662  5,879 
Long-term debt due after one year 26,281  25,000  23,847  22,818  25,247 
Total debt 37,657  36,553  34,878  36,783  38,093 
 
Total assets 78,453  78,509  76,962  74,704  78,497 
Solvency Ratio
Debt to assets1 0.48 0.47 0.45 0.49 0.49
Benchmarks
Debt to Assets, Competitors2
Illinois Tool Works Inc. 0.51 0.50 0.50 0.52 0.47
Debt to Assets, Sector
Industrial Engineering 0.49 0.47 0.46 0.50 0.48
Debt to Assets, Industry
Industrials 0.32 0.32 0.32 0.30 0.31

Based on: 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), 10-K (filing date: 2016-02-16).

1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 37,657 ÷ 78,453 = 0.48

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 2017 to 2018 and from 2018 to 2019.

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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings 5,166  5,723  4,837  7,303  6,967 
Long-term debt due within one year 6,210  5,830  6,194  6,662  5,879 
Long-term debt due after one year 26,281  25,000  23,847  22,818  25,247 
Total debt 37,657  36,553  34,878  36,783  38,093 
Current operating lease liabilities (recognized in Other current liabilities) 173  —  —  —  — 
Noncurrent operating lease liabilities (recognized in Other liabilities) 461  —  —  —  — 
Total debt (including operating lease liability) 38,291  36,553  34,878  36,783  38,093 
 
Total assets 78,453  78,509  76,962  74,704  78,497 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.49 0.47 0.45 0.49 0.49
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Illinois Tool Works Inc. 0.53 0.50 0.50 0.52 0.47
Debt to Assets (including Operating Lease Liability), Sector
Industrial Engineering 0.49 0.47 0.46 0.50 0.48
Debt to Assets (including Operating Lease Liability), Industry
Industrials 0.34 0.32 0.32 0.30 0.31

Based on: 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), 10-K (filing date: 2016-02-16).

1 2019 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 38,291 ÷ 78,453 = 0.49

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 2017 to 2018 and from 2018 to 2019.

Financial Leverage

Caterpillar Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Total assets 78,453  78,509  76,962  74,704  78,497 
Equity attributable to common stockholders 14,588  14,039  13,697  13,137  14,809 
Solvency Ratio
Financial leverage1 5.38 5.59 5.62 5.69 5.30
Benchmarks
Financial Leverage, Competitors2
Illinois Tool Works Inc. 4.98 4.57 3.66 3.57 3.01
Financial Leverage, Sector
Industrial Engineering 5.31 5.40 5.13 5.17 4.70
Financial Leverage, Industry
Industrials 5.45 5.30 4.73 4.61 4.41

Based on: 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), 10-K (filing date: 2016-02-16).

1 2019 Calculation
Financial leverage = Total assets ÷ Equity attributable to common stockholders
= 78,453 ÷ 14,588 = 5.38

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 2017 to 2018 and from 2018 to 2019.

Interest Coverage

Caterpillar Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Profit (loss) attributable to common stockholders 6,093  6,147  754  (67) 2,102 
Add: Net income attributable to noncontrolling interest 11 
Add: Income tax expense 1,746  1,698  3,339  192  742 
Add: Interest expense excluding Financial Products 421  404  531  505  507 
Earnings before interest and tax (EBIT) 8,261  8,250  4,629  638  3,362 
Solvency Ratio
Interest coverage1 19.62 20.42 8.72 1.26 6.63
Benchmarks
Interest Coverage, Competitors2
Illinois Tool Works Inc. 15.88 14.21 13.58 13.27 13.03
Interest Coverage, Sector
Industrial Engineering 18.33 18.00 10.31 5.10 8.60
Interest Coverage, Industry
Industrials 6.63 6.52 7.49 7.86 10.13

Based on: 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), 10-K (filing date: 2016-02-16).

1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 8,261 ÷ 421 = 19.62

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 improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Fixed Charge Coverage

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Profit (loss) attributable to common stockholders 6,093  6,147  754  (67) 2,102 
Add: Net income attributable to noncontrolling interest 11 
Add: Income tax expense 1,746  1,698  3,339  192  742 
Add: Interest expense excluding Financial Products 421  404  531  505  507 
Earnings before interest and tax (EBIT) 8,261  8,250  4,629  638  3,362 
Add: Operating lease cost 232  322  331  375  371 
Earnings before fixed charges and tax 8,493  8,572  4,960  1,013  3,733 
 
Interest expense excluding Financial Products 421  404  531  505  507 
Operating lease cost 232  322  331  375  371 
Fixed charges 653  726  862  880  878 
Solvency Ratio
Fixed charge coverage1 13.01 11.81 5.75 1.15 4.25
Benchmarks
Fixed Charge Coverage, Competitors2
Illinois Tool Works Inc. 10.84 9.91 9.61 9.12 8.93
Fixed Charge Coverage, Sector
Industrial Engineering 12.27 11.15 6.93 3.46 5.57
Fixed Charge Coverage, Industry
Industrials 4.24 3.98 4.41 4.63 5.62

Based on: 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), 10-K (filing date: 2016-02-16).

1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 8,493 ÷ 653 = 13.01

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 2017 to 2018 and from 2018 to 2019.