.Long-term Debt and Solvency Analysis Quarterly Data
Difficulty: Beginner
Solvency ratios also known as long-term debt ratios measure a company's ability to meet long-term obligations.
Ratios (Summary)
Caterpillar Inc., debt and solvency ratios (quarterly data)
| Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Debt to equity | ||||||||||||||||||||
| | Debt to capital | ||||||||||||||||||||
| | Interest coverage |
| 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 improved from Q2 2017 to Q3 2017 but then slightly deteriorated from Q3 2017 to Q4 2017 not reaching Q2 2017 level. |
| 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 improved from Q2 2017 to Q3 2017 but then slightly deteriorated from Q3 2017 to Q4 2017 not reaching Q2 2017 level. |
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Caterpillar Inc.'s interest coverage ratio improved from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017. |
Debt to Equity
Caterpillar Inc., debt to equity calculation (quarterly data)
| Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||||||||||||||||
| | Short-term borrowings | ||||||||||||||||||||
| | Long-term debt due within one year | ||||||||||||||||||||
| | Long-term debt due after one year | ||||||||||||||||||||
| | Total debt | ||||||||||||||||||||
| | Shareholders' equity attributable to common shareholders | ||||||||||||||||||||
| Ratio | |||||||||||||||||||||
| | Debt to equity1 | ||||||||||||||||||||
Q4 2017 Calculations
1 Debt to equity = Total debt ÷ Shareholders' equity attributable to common shareholders
= ÷ =
| 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 improved from Q2 2017 to Q3 2017 but then slightly deteriorated from Q3 2017 to Q4 2017 not reaching Q2 2017 level. |
Debt to Capital
Caterpillar Inc., debt to capital calculation (quarterly data)
| Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||||||||||||||||
| | Short-term borrowings | ||||||||||||||||||||
| | Long-term debt due within one year | ||||||||||||||||||||
| | Long-term debt due after one year | ||||||||||||||||||||
| | Total debt | ||||||||||||||||||||
| | Shareholders' equity attributable to common shareholders | ||||||||||||||||||||
| | Total capital | ||||||||||||||||||||
| Ratio | |||||||||||||||||||||
| | Debt to capital1 | ||||||||||||||||||||
Q4 2017 Calculations
1 Debt to capital = Total debt ÷ Total capital
= ÷ =
| 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 improved from Q2 2017 to Q3 2017 but then slightly deteriorated from Q3 2017 to Q4 2017 not reaching Q2 2017 level. |
Interest Coverage
Caterpillar Inc., interest coverage calculation (quarterly data)
| Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||||||||||||||||
| | Profit (loss) attributable to common stockholders | ||||||||||||||||||||
| | Add: Net income attributable to noncontrolling interest | ||||||||||||||||||||
| | Add: Income tax expense | ||||||||||||||||||||
| | Add: Interest expense excluding Financial Products | ||||||||||||||||||||
| | Earnings before interest and tax (EBIT) | ||||||||||||||||||||
| Ratio | |||||||||||||||||||||
| | Interest coverage1 | ||||||||||||||||||||
Q4 2017 Calculations
1 Interest coverage
= (EBITQ4 2017
+ EBITQ3 2017
+ EBITQ2 2017
+ EBITQ1 2017)
÷ (Interest expenseQ4 2017
+ Interest expenseQ3 2017
+ Interest expenseQ2 2017
+ Interest expenseQ1 2017)
= ( + + + )
÷ ( + + + )
=
| 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 Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017. |
