Analysis of Solvency Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
The analysis of the quarterly financial ratios over the observed periods reveals several noteworthy trends in the company's capital structure and financial health.
- Debt to Equity Ratio
- This ratio shows moderate fluctuations, starting at 2.3 in early 2021, slightly decreasing towards the end of 2021, then rising and falling irregularly through 2022 into 2025. A notable decline occurs around late 2022, reaching a low near 1.81, followed by an increase in subsequent quarters. By the latest period, it stands at approximately 2.01, suggesting the company maintains a fairly consistent reliance on debt relative to equity, with some periods indicating attempts to reduce debt levels.
- Debt to Capital Ratio
- The debt to capital ratio remains stable across the periods observed, largely oscillating between 0.64 and 0.7. This stability indicates a consistent balance in the company’s financing mix between debt and equity. Minor decreases observed near late 2022 and late 2024 are followed by a return to previous levels, reflecting limited shifts in capital structure composition.
- Debt to Assets Ratio
- This ratio shows a gradual declining trend over the periods, beginning near 0.47 and settling around 0.44 to 0.45 in more recent quarters. The slow decrease indicates a marginal reduction in the company's leverage relative to total assets, illustrating a conservative approach in financing assets with debt over time.
- Financial Leverage
- Financial leverage displays minor variations but maintains a generally decreasing pattern from a high of about 5.19 in late 2022 down to approximately 4.54 by the end of the period analyzed. This reduction suggests an improvement in the equity base relative to total assets, implying the company may be enhancing its solvency or equity cushion.
- Interest Coverage Ratio
- A strong upward trend is evident in the interest coverage ratio. Beginning at 9.28 in early 2021, it improves substantially across the periods, peaking beyond 27 in late 2024. It slightly tapers off but remains robust around 25.46 by the final quarter analyzed. This significant increase reflects the company’s improving ability to meet interest obligations from operating earnings, signaling enhanced earnings strength and lower financial risk.
Overall, the financial data suggest a company maintaining a steady, somewhat conservative debt profile with improved earnings capacity to cover interest charges. The slight declines in leverage ratios correspond with strengthened interest coverage, indicating a potentially deliberate strategy toward enhancing financial stability and reducing risk over the medium term.
Debt Ratios
Coverage Ratios
Debt to Equity
Caterpillar Inc., debt to equity calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term borrowings | 4,509) | 4,485) | 3,454) | 4,393) | 3,725) | 5,298) | 3,568) | 4,643) | 4,218) | 5,548) | 5,841) | 5,957) | 4,202) | 5,002) | 4,501) | 5,404) | 3,247) | 3,425) | 3,625) | ||||||
| Long-term debt due within one year | 9,289) | 8,315) | 9,315) | 6,665) | 8,392) | 8,177) | 9,454) | 8,763) | 8,662) | 9,166) | 6,324) | 5,322) | 6,814) | 5,741) | 7,806) | 6,352) | 6,383) | 7,956) | 8,199) | ||||||
| Long-term debt due after one year | 27,736) | 27,948) | 25,819) | 27,351) | 25,784) | 23,836) | 24,831) | 24,472) | 24,259) | 22,985) | 24,873) | 25,714) | 25,509) | 26,219) | 25,277) | 26,033) | 27,154) | 26,204) | 26,356) | ||||||
| Total debt | 41,534) | 40,748) | 38,588) | 38,409) | 37,901) | 37,311) | 37,853) | 37,878) | 37,139) | 37,699) | 37,038) | 36,993) | 36,525) | 36,962) | 37,584) | 37,789) | 36,784) | 37,585) | 38,180) | ||||||
| Shareholders’ equity attributable to common shareholders | 20,658) | 18,661) | 18,067) | 19,491) | 19,397) | 17,130) | 17,639) | 19,494) | 20,489) | 18,235) | 18,149) | 15,869) | 15,591) | 15,727) | 17,065) | 16,484) | 16,665) | 16,833) | 16,573) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity1 | 2.01 | 2.18 | 2.14 | 1.97 | 1.95 | 2.18 | 2.15 | 1.94 | 1.81 | 2.07 | 2.04 | 2.33 | 2.34 | 2.35 | 2.20 | 2.29 | 2.21 | 2.23 | 2.30 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 0.57 | 0.59 | 0.54 | 0.50 | 0.49 | 0.51 | 0.48 | 0.49 | 0.50 | 0.52 | 0.50 | 0.51 | 0.56 | 0.59 | 0.58 | 0.52 | 0.57 | 0.79 | 0.68 | ||||||
| GE Aerospace | 1.11 | 0.99 | 1.02 | 1.00 | 1.06 | 1.06 | 0.69 | 0.77 | 0.73 | 0.70 | 0.71 | 0.89 | 0.97 | 0.94 | 0.86 | 0.87 | 1.68 | 1.90 | 2.12 | ||||||
| Honeywell International Inc. | 2.21 | 2.27 | 1.88 | 1.67 | 1.77 | 1.65 | 1.53 | 1.29 | 1.18 | 1.24 | 1.13 | 1.17 | 0.96 | 1.09 | 1.05 | 1.06 | 1.19 | 1.19 | 1.19 | ||||||
| Lockheed Martin Corp. | 3.59 | 4.06 | 3.04 | 3.20 | 2.68 | 3.12 | 2.92 | 2.55 | 1.88 | 1.90 | 1.62 | 1.68 | 0.96 | 1.02 | 1.16 | 1.07 | 1.21 | 1.87 | 1.93 | ||||||
| RTX Corp. | 0.61 | 0.67 | 0.67 | 0.69 | 0.69 | 0.71 | 0.71 | 0.73 | 0.51 | 0.49 | 0.47 | 0.44 | 0.48 | 0.45 | 0.43 | 0.43 | 0.44 | 0.44 | 0.44 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity attributable to common shareholders
= 41,534 ÷ 20,658 = 2.01
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in Caterpillar Inc.’s capital structure and leverage over the observed periods.
- Total Debt
- Total debt levels exhibit a generally stable pattern with moderate fluctuations. Initially, total debt decreased slightly from approximately $38.2 billion at the end of Q1 2021 to around $36.5 billion by Q3 2021, indicating a modest deleveraging during that period. Subsequently, total debt held relatively steady near the $37 billion range through the end of 2022. From early 2023 onward, a gradual upward trend is evident, with total debt increasing to over $41.5 billion by Q3 2025. This suggests a tendency toward incremental borrowing or accumulation of liabilities in recent quarters.
- Shareholders’ Equity Attributable to Common Shareholders
- Equity levels demonstrate more volatility compared to total debt. Initially, equity values fluctuated around the $16-$17 billion mark through most of 2021, followed by a decline in mid-2022 reaching approximately $15.6 billion. A significant increase occurred around Q3 2022 and Q4 2022 with equity surpassing $20 billion briefly but then experiencing corrections. The periods from 2023 to mid-2024 reflect a mixture of increases and declines, indicating some instability or changing value drivers in equity components. By Q3 2025, equity increased again to roughly $20.7 billion, indicating recovery or growth strategies affecting net assets.
- Debt to Equity Ratio
- The debt to equity ratio, a key leverage metric, mirrored the movements of debt and equity with some smoothing effect. Initially, this ratio hovered around 2.2 to 2.3 in early 2021, showing relatively high leverage. A notable decrease occurred in 2023, reaching as low as approximately 1.81 in Q3 2023, reflecting the period when equity temporarily increased while debt was stable or slightly lower. However, this ratio rose again in subsequent quarters, fluctuating mostly between 2.0 and 2.2, and reaching about 2.01 by Q3 2025. The movement indicates persistent leverage with occasional de-risking but a return to a higher leverage profile recently.
Overall, the company maintained a substantial leverage position throughout the period, with debt consistently exceeding shareholders’ equity by a factor of about two. The interplay between increasing total debt and fluctuating equity levels led to a cyclical pattern in the debt to equity ratio, underscoring periods of both deleveraging and incremental borrowing. These trends suggest strategic management of the capital structure in response to market conditions, investment activities, or operational cash flows affecting net worth and debt levels.
Debt to Capital
Caterpillar Inc., debt to capital calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term borrowings | 4,509) | 4,485) | 3,454) | 4,393) | 3,725) | 5,298) | 3,568) | 4,643) | 4,218) | 5,548) | 5,841) | 5,957) | 4,202) | 5,002) | 4,501) | 5,404) | 3,247) | 3,425) | 3,625) | ||||||
| Long-term debt due within one year | 9,289) | 8,315) | 9,315) | 6,665) | 8,392) | 8,177) | 9,454) | 8,763) | 8,662) | 9,166) | 6,324) | 5,322) | 6,814) | 5,741) | 7,806) | 6,352) | 6,383) | 7,956) | 8,199) | ||||||
| Long-term debt due after one year | 27,736) | 27,948) | 25,819) | 27,351) | 25,784) | 23,836) | 24,831) | 24,472) | 24,259) | 22,985) | 24,873) | 25,714) | 25,509) | 26,219) | 25,277) | 26,033) | 27,154) | 26,204) | 26,356) | ||||||
| Total debt | 41,534) | 40,748) | 38,588) | 38,409) | 37,901) | 37,311) | 37,853) | 37,878) | 37,139) | 37,699) | 37,038) | 36,993) | 36,525) | 36,962) | 37,584) | 37,789) | 36,784) | 37,585) | 38,180) | ||||||
| Shareholders’ equity attributable to common shareholders | 20,658) | 18,661) | 18,067) | 19,491) | 19,397) | 17,130) | 17,639) | 19,494) | 20,489) | 18,235) | 18,149) | 15,869) | 15,591) | 15,727) | 17,065) | 16,484) | 16,665) | 16,833) | 16,573) | ||||||
| Total capital | 62,192) | 59,409) | 56,655) | 57,900) | 57,298) | 54,441) | 55,492) | 57,372) | 57,628) | 55,934) | 55,187) | 52,862) | 52,116) | 52,689) | 54,649) | 54,273) | 53,449) | 54,418) | 54,753) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital1 | 0.67 | 0.69 | 0.68 | 0.66 | 0.66 | 0.69 | 0.68 | 0.66 | 0.64 | 0.67 | 0.67 | 0.70 | 0.70 | 0.70 | 0.69 | 0.70 | 0.69 | 0.69 | 0.70 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 1.18 | 1.07 | 1.07 | 1.08 | 1.69 | 1.45 | 1.55 | 1.49 | 1.47 | 1.42 | 1.39 | 1.39 | 1.45 | 1.35 | 1.36 | 1.35 | 1.30 | 1.36 | 1.40 | ||||||
| Eaton Corp. plc | 0.36 | 0.37 | 0.35 | 0.33 | 0.33 | 0.34 | 0.32 | 0.33 | 0.33 | 0.34 | 0.34 | 0.34 | 0.36 | 0.37 | 0.37 | 0.34 | 0.36 | 0.44 | 0.40 | ||||||
| GE Aerospace | 0.53 | 0.50 | 0.50 | 0.50 | 0.51 | 0.51 | 0.41 | 0.43 | 0.42 | 0.41 | 0.41 | 0.47 | 0.49 | 0.48 | 0.46 | 0.47 | 0.63 | 0.65 | 0.68 | ||||||
| Honeywell International Inc. | 0.69 | 0.69 | 0.65 | 0.63 | 0.64 | 0.62 | 0.61 | 0.56 | 0.54 | 0.55 | 0.53 | 0.54 | 0.49 | 0.52 | 0.51 | 0.51 | 0.54 | 0.54 | 0.54 | ||||||
| Lockheed Martin Corp. | 0.78 | 0.80 | 0.75 | 0.76 | 0.73 | 0.76 | 0.74 | 0.72 | 0.65 | 0.66 | 0.62 | 0.63 | 0.49 | 0.50 | 0.54 | 0.52 | 0.55 | 0.65 | 0.66 | ||||||
| RTX Corp. | 0.38 | 0.40 | 0.40 | 0.41 | 0.41 | 0.42 | 0.41 | 0.42 | 0.34 | 0.33 | 0.32 | 0.31 | 0.32 | 0.31 | 0.30 | 0.30 | 0.30 | 0.31 | 0.31 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 41,534 ÷ 62,192 = 0.67
2 Click competitor name to see calculations.
- Total Debt
-
The total debt level exhibits moderate fluctuations across the given periods. Beginning at approximately $38.2 billion in the first quarter of 2021, total debt declines somewhat through 2021 and the first half of 2022, reaching a low near $36.5 billion in the third quarter of 2022. From this point, debt slightly increases again, maintaining a level around $37 billion through 2023. A notable upward trend emerges starting in late 2024, where total debt rises more sharply, culminating in about $41.5 billion by the third quarter of 2025, indicating an increase in leverage or financing activities during the most recent periods.
- Total Capital
-
Total capital remains relatively stable with some variance over the time frame. It starts near $54.8 billion in early 2021, experiences a dip in mid-2022 to slightly above $52 billion, followed by a rebound and gradual increase through 2023 and into 2024. The highest recorded figure is approximately $62.2 billion in the third quarter of 2025. This upward trajectory in later periods suggests overall growth in the company's capital base, possibly driven by increased equity, retained earnings, or debt financing.
- Debt to Capital Ratio
-
The debt to capital ratio remains relatively stable around 0.7 (70%) throughout most periods, indicating that debt consistently represents about 70% of total capital. Notably, during 2023, this ratio declines to a range between 0.64 and 0.67, reflecting a slight decrease in leverage relative to capital. However, by 2024 and into mid-2025, the ratio trends back upwards toward 0.68–0.69, aligning with the increase in total debt and capital. The fluctuations suggest a consistent capital structure strategy with moderate variations rather than significant shifts in financial leverage.
Debt to Assets
Caterpillar Inc., debt to assets calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term borrowings | 4,509) | 4,485) | 3,454) | 4,393) | 3,725) | 5,298) | 3,568) | 4,643) | 4,218) | 5,548) | 5,841) | 5,957) | 4,202) | 5,002) | 4,501) | 5,404) | 3,247) | 3,425) | 3,625) | ||||||
| Long-term debt due within one year | 9,289) | 8,315) | 9,315) | 6,665) | 8,392) | 8,177) | 9,454) | 8,763) | 8,662) | 9,166) | 6,324) | 5,322) | 6,814) | 5,741) | 7,806) | 6,352) | 6,383) | 7,956) | 8,199) | ||||||
| Long-term debt due after one year | 27,736) | 27,948) | 25,819) | 27,351) | 25,784) | 23,836) | 24,831) | 24,472) | 24,259) | 22,985) | 24,873) | 25,714) | 25,509) | 26,219) | 25,277) | 26,033) | 27,154) | 26,204) | 26,356) | ||||||
| Total debt | 41,534) | 40,748) | 38,588) | 38,409) | 37,901) | 37,311) | 37,853) | 37,878) | 37,139) | 37,699) | 37,038) | 36,993) | 36,525) | 36,962) | 37,584) | 37,789) | 36,784) | 37,585) | 38,180) | ||||||
| Total assets | 93,722) | 90,325) | 84,974) | 87,764) | 86,273) | 83,336) | 83,741) | 87,476) | 86,791) | 85,427) | 83,649) | 81,943) | 80,907) | 81,107) | 82,276) | 82,793) | 80,784) | 81,697) | 80,729) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets1 | 0.44 | 0.45 | 0.45 | 0.44 | 0.44 | 0.45 | 0.45 | 0.43 | 0.43 | 0.44 | 0.44 | 0.45 | 0.45 | 0.46 | 0.46 | 0.46 | 0.46 | 0.46 | 0.47 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 0.36 | 0.34 | 0.34 | 0.34 | 0.42 | 0.41 | 0.36 | 0.38 | 0.39 | 0.39 | 0.41 | 0.42 | 0.42 | 0.42 | 0.43 | 0.42 | 0.43 | 0.43 | 0.42 | ||||||
| Eaton Corp. plc | 0.26 | 0.27 | 0.26 | 0.24 | 0.24 | 0.25 | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | 0.25 | 0.26 | 0.28 | 0.27 | 0.25 | 0.27 | 0.33 | 0.30 | ||||||
| GE Aerospace | 0.16 | 0.15 | 0.16 | 0.16 | 0.16 | 0.16 | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.17 | 0.17 | 0.18 | 0.18 | 0.18 | 0.27 | 0.27 | 0.29 | ||||||
| Honeywell International Inc. | 0.46 | 0.47 | 0.44 | 0.41 | 0.42 | 0.40 | 0.38 | 0.33 | 0.33 | 0.34 | 0.32 | 0.31 | 0.28 | 0.31 | 0.31 | 0.30 | 0.33 | 0.33 | 0.34 | ||||||
| Lockheed Martin Corp. | 0.37 | 0.37 | 0.36 | 0.36 | 0.35 | 0.35 | 0.35 | 0.33 | 0.31 | 0.31 | 0.29 | 0.29 | 0.22 | 0.22 | 0.23 | 0.23 | 0.23 | 0.23 | 0.24 | ||||||
| RTX Corp. | 0.23 | 0.25 | 0.25 | 0.25 | 0.26 | 0.26 | 0.27 | 0.27 | 0.22 | 0.22 | 0.21 | 0.20 | 0.21 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 41,534 ÷ 93,722 = 0.44
2 Click competitor name to see calculations.
- Total Debt
- The total debt values exhibit some fluctuations over the observed periods. Starting at approximately 38.2 billion US dollars in the first quarter of 2021, the total debt showed a slight decline through 2022, reaching a low near 36.5 billion US dollars in the third quarter of 2022. However, from late 2022 onwards, there is a general upward trend with total debt increasing steadily to about 41.5 billion US dollars by the third quarter of 2025. The increase in debt during the latter periods may suggest either increased borrowing for expansion or other financial strategies.
- Total Assets
- Total assets started at about 80.7 billion US dollars in the first quarter of 2021. There was a gradual growth trend visible through 2023, reaching a peak close to 87.5 billion US dollars in the fourth quarter of 2023. Subsequently, total assets experienced some volatility but maintained elevated levels above 83 billion US dollars, culminating at approximately 93.7 billion US dollars in the third quarter of 2025. This indicates an overall growth in the asset base over the observed period.
- Debt to Assets Ratio
- The debt to assets ratio shows a small but consistent decline from 0.47 in the first quarter of 2021 to a low of around 0.43 in the last quarters of 2023. This declining ratio suggests an improvement in the company's leverage position, as assets grew at a faster pace than debt during this time. However, starting around the first quarter of 2024, the ratio stabilizes and slightly increases back towards 0.44-0.45. This indicates that despite growing assets, debt levels have also risen proportionally in the more recent periods, slightly reducing the earlier improvements in financial leverage.
- Overall Analysis
- The financial data indicates a company that has moderately increased both its debt and assets over the examined timeframe. The trend in the debt to assets ratio shows that the company initially strengthened its balance sheet by growing assets faster than debt, thus reducing leverage. More recently, however, total debt has increased alongside assets, causing a slight increase in leverage ratios. This pattern may reflect strategic decisions to finance growth or other operational needs by taking on additional debt. The steady growth in total assets suggests an expansion or acquisition of resources which could position the company for future operational strength.
Financial Leverage
Caterpillar Inc., financial leverage calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Total assets | 93,722) | 90,325) | 84,974) | 87,764) | 86,273) | 83,336) | 83,741) | 87,476) | 86,791) | 85,427) | 83,649) | 81,943) | 80,907) | 81,107) | 82,276) | 82,793) | 80,784) | 81,697) | 80,729) | ||||||
| Shareholders’ equity attributable to common shareholders | 20,658) | 18,661) | 18,067) | 19,491) | 19,397) | 17,130) | 17,639) | 19,494) | 20,489) | 18,235) | 18,149) | 15,869) | 15,591) | 15,727) | 17,065) | 16,484) | 16,665) | 16,833) | 16,573) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Financial leverage1 | 4.54 | 4.84 | 4.70 | 4.50 | 4.45 | 4.86 | 4.75 | 4.49 | 4.24 | 4.68 | 4.61 | 5.16 | 5.19 | 5.16 | 4.82 | 5.02 | 4.85 | 4.85 | 4.87 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 2.16 | 2.18 | 2.12 | 2.08 | 2.05 | 2.05 | 2.00 | 2.02 | 2.03 | 2.05 | 2.04 | 2.06 | 2.14 | 2.15 | 2.12 | 2.07 | 2.14 | 2.39 | 2.27 | ||||||
| GE Aerospace | 6.82 | 6.55 | 6.45 | 6.37 | 6.71 | 6.62 | 5.49 | 5.96 | 5.47 | 5.23 | 5.20 | 5.16 | 5.75 | 5.35 | 4.92 | 4.93 | 6.33 | 7.09 | 7.30 | ||||||
| Honeywell International Inc. | 4.82 | 4.87 | 4.31 | 4.04 | 4.22 | 4.09 | 3.99 | 3.88 | 3.56 | 3.60 | 3.54 | 3.73 | 3.40 | 3.55 | 3.45 | 3.47 | 3.60 | 3.56 | 3.53 | ||||||
| Lockheed Martin Corp. | 9.75 | 11.04 | 8.48 | 8.78 | 7.71 | 8.92 | 8.27 | 7.67 | 6.11 | 6.17 | 5.66 | 5.71 | 4.35 | 4.53 | 5.15 | 4.64 | 5.38 | 7.99 | 8.15 | ||||||
| RTX Corp. | 2.61 | 2.68 | 2.68 | 2.71 | 2.70 | 2.73 | 2.65 | 2.71 | 2.33 | 2.24 | 2.22 | 2.19 | 2.25 | 2.26 | 2.20 | 2.21 | 2.23 | 2.23 | 2.24 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity attributable to common shareholders
= 93,722 ÷ 20,658 = 4.54
2 Click competitor name to see calculations.
- Total Assets
- The total assets exhibit a generally upward trend over the periods analyzed. Starting at approximately 80.7 billion US dollars in March 2021, assets showed minor fluctuations but gradually increased to reach around 93.7 billion US dollars by September 2025. Some periods reflect slight declines or stagnations, particularly in mid-2022 and early 2024, but the overall trajectory is positive, indicating asset growth over the long term.
- Shareholders’ Equity Attributable to Common Shareholders
- Shareholders’ equity demonstrates variability across the quarters with a tendency towards growth in certain intervals. Initial equity was around 16.6 billion US dollars at the start of 2021, followed by fluctuations including noticeable decreases in mid-2022 and early 2024. A significant rise occurs during late 2022 and late 2023, peaking near 20.5 billion US dollars. However, the equity figures do not show a consistent upward movement without interruptions, suggesting episodes of equity dilution or losses offset by subsequent gains.
- Financial Leverage Ratio
- The financial leverage ratio varies over time, indicating fluctuating reliance on debt relative to equity. Initially near 4.87, the ratio slightly decreased until late 2021 before rising above 5.0 in 2022, reflecting increased leverage. Subsequently, the ratio declined noticeably through 2023, reaching the lowest point around 4.24, then oscillated between approximately 4.45 and 4.86. By the third quarter of 2025, the leverage ratio came down to roughly 4.54, suggesting a moderate reduction in financial leverage compared to peaks observed in 2022.
- Summary and Insights
- Overall, the asset base has expanded over the examined period, denoting growth or acquisition activities. Shareholders’ equity, while generally increasing, experiences episodes of volatility that may correspond to market conditions, earnings, dividend policies, or capital restructuring. The financial leverage ratio's fluctuations imply periods of varying debt usage, with a notable peak in 2022 followed by a trend toward deleveraging. The interplay between rising assets and changing equity levels results in dynamic leverage changes, reflecting strategic financing decisions in response to operational and economic factors.
Interest Coverage
Caterpillar Inc., interest coverage calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Profit attributable to common stockholders | 2,300) | 2,179) | 2,003) | 2,791) | 2,464) | 2,681) | 2,856) | 2,676) | 2,794) | 2,922) | 1,943) | 1,454) | 2,041) | 1,673) | 1,537) | 2,120) | 1,426) | 1,413) | 1,530) | ||||||
| Add: Net income attributable to noncontrolling interest | (1) | —) | —) | (1) | (1) | —) | (2) | (3) | (1) | 2) | (1) | —) | (1) | —) | —) | —) | 2) | 1) | 1) | ||||||
| Add: Income tax expense | 836) | 646) | 574) | 463) | 642) | 836) | 688) | 587) | 734) | 752) | 708) | 644) | 527) | 427) | 469) | 429) | 368) | 470) | 475) | ||||||
| Add: Interest expense excluding Financial Products | 133) | 126) | 116) | 107) | 125) | 137) | 143) | 126) | 129) | 127) | 129) | 117) | 109) | 108) | 109) | 112) | 114) | 120) | 142) | ||||||
| Earnings before interest and tax (EBIT) | 3,268) | 2,951) | 2,693) | 3,360) | 3,230) | 3,654) | 3,685) | 3,386) | 3,656) | 3,803) | 2,779) | 2,215) | 2,676) | 2,208) | 2,115) | 2,661) | 1,910) | 2,004) | 2,148) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Interest coverage1 | 25.46 | 25.81 | 26.67 | 27.21 | 26.28 | 26.88 | 27.68 | 26.66 | 24.81 | 23.80 | 21.33 | 20.80 | 22.05 | 20.08 | 19.10 | 17.88 | 14.11 | 11.79 | 9.28 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | -2.41 | -2.72 | -3.10 | -3.48 | -2.16 | -0.23 | 0.21 | 0.18 | -0.06 | -0.85 | -0.53 | -0.98 | -2.54 | -1.40 | -1.31 | -0.88 | -2.29 | -2.55 | -4.26 | ||||||
| Eaton Corp. plc | 23.55 | 28.05 | 36.65 | 36.12 | 40.37 | 37.97 | 32.04 | 26.34 | 22.25 | 19.68 | 19.85 | 21.22 | 21.33 | 24.31 | 22.57 | 21.11 | 20.08 | 15.71 | 11.87 | ||||||
| GE Aerospace | 12.56 | 11.46 | 9.44 | 8.73 | 7.93 | 6.25 | 6.11 | 10.12 | 9.41 | 8.49 | 6.73 | 1.88 | -1.66 | -1.16 | -1.49 | -0.96 | 2.15 | 1.11 | 0.65 | ||||||
| Honeywell International Inc. | 6.96 | 6.92 | 7.43 | 7.82 | 8.40 | 9.33 | 9.89 | 10.36 | 10.68 | 12.45 | 14.34 | 16.41 | 20.95 | 20.60 | 21.35 | 22.09 | 20.98 | 18.89 | 16.79 | ||||||
| Lockheed Martin Corp. | 5.50 | 5.60 | 7.12 | 7.00 | 8.65 | 8.83 | 9.19 | 9.84 | 10.42 | 11.74 | 10.58 | 11.72 | 13.31 | 10.88 | 14.12 | 14.27 | 13.67 | 15.97 | 15.44 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Interest coverage
= (EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025
+ EBITQ4 2024)
÷ (Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025
+ Interest expenseQ4 2024)
= (3,268 + 2,951 + 2,693 + 3,360)
÷ (133 + 126 + 116 + 107)
= 25.46
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals significant trends in earnings, interest expenses, and interest coverage over the observed periods.
- Earnings before interest and tax (EBIT)
- The EBIT figures fluctuate considerably across quarters, with a clear upward trend starting from early 2023. Initial values in 2021 show moderate fluctuations, with a low in the third quarter of 2021 at 1910 million US dollars and reaching a peak of 2676 million in the third quarter of 2022. The year 2023 demonstrates a notable increase in EBIT, especially in the second quarter (3803 million) and the third quarter (3656 million). However, a slight decline is observed towards the end of 2023 and into the third quarter of 2024. Despite these declines, EBIT remains strong compared to earlier periods, indicating improved operational profitability over time.
- Interest Expense Excluding Financial Products
- The interest expense shows a relatively stable pattern with minor fluctuations across all quarters. The expense ranges mostly between 107 and 143 million US dollars. Noteworthy is a higher interest expense near the middle of 2024 at 143 million, followed by some decreases and subsequent rises. This stability suggests consistent financing costs that do not dramatically impact earnings variations.
- Interest Coverage Ratio
- The interest coverage ratio presents a robust and steadily increasing trend throughout the periods analyzed. From a lower ratio of 9.28 at the beginning of 2021, it gradually increases to exceed 25 times by 2024 and 2025, peaking at 27.68. This improvement implies an increasing ability of the company to meet interest obligations from its EBIT, reflecting enhanced financial health and reduced risk from debt servicing.
In summary, the company exhibits strengthening operational performance as evidenced by rising EBIT levels, especially notable after 2022. Interest expenses remain manageable and consistent, while the marked increase in interest coverage ratio highlights an enhanced capacity to cover interest payments, indicating strong financial stability and operational efficiency over the analyzed timeframe.