Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
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
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
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
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
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
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
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
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
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 | ||||||
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
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 | ||||||
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. |