Microsoft Excel LibreOffice Calc

Caterpillar Inc. (CAT)


Analysis of Profitability Ratios

Beginner level


Profitability Ratios (Summary)

Caterpillar Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Return on Sales
Gross profit margin 28.61% 27.24% 20.86% 23.57% 23.73%
Operating profit margin 16.00% 10.32% 1.39% 7.38% 10.22%
Net profit margin 11.86% 1.77% -0.19% 4.76% 7.09%
Return on Investment
Return on equity (ROE) 43.79% 5.50% -0.51% 14.19% 22.06%
Return on assets (ROA) 7.83% 0.98% -0.09% 2.68% 4.36%

Based on: 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), 10-K (filing date: 2015-02-17).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Caterpillar Inc.’s gross profit margin ratio improved from 2016 to 2017 and from 2017 to 2018.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Caterpillar Inc.’s operating profit margin ratio improved from 2016 to 2017 and from 2017 to 2018.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Caterpillar Inc.’s net profit margin ratio improved from 2016 to 2017 and from 2017 to 2018.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Caterpillar Inc.’s ROE improved from 2016 to 2017 and from 2017 to 2018.
ROA A profitability ratio calculated as net income divided by total assets. Caterpillar Inc.’s ROA improved from 2016 to 2017 and from 2017 to 2018.

Gross Profit Margin

Caterpillar Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Gross margin 14,825  11,627  7,464  10,405  12,375 
Sales of Machinery, Energy & Transportation 51,822  42,676  35,773  44,147  52,142 
Profitability Ratio
Gross profit margin1 28.61% 27.24% 20.86% 23.57% 23.73%
Benchmarks
Gross Profit Margin, Competitors2
Illinois Tool Works Inc. 41.74% 41.95% 41.94% 41.16% 40.12%

Based on: 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), 10-K (filing date: 2015-02-17).

1 2018 Calculation
Gross profit margin = 100 × Gross margin ÷ Sales of Machinery, Energy & Transportation
= 100 × 14,825 ÷ 51,822 = 28.61%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Caterpillar Inc.’s gross profit margin ratio improved from 2016 to 2017 and from 2017 to 2018.

Operating Profit Margin

Caterpillar Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Operating profit 8,293  4,406  498  3,256  5,328 
Sales of Machinery, Energy & Transportation 51,822  42,676  35,773  44,147  52,142 
Profitability Ratio
Operating profit margin1 16.00% 10.32% 1.39% 7.38% 10.22%
Benchmarks
Operating Profit Margin, Competitors2
Illinois Tool Works Inc. 24.27% 24.41% 22.53% 21.39% 19.94%
Operating Profit Margin, Sector
Industrial Engineering 17.84% 13.86% 7.21% 10.64%
Operating Profit Margin, Industry
Industrials 14.04% 13.70% 12.78% 13.66%

Based on: 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), 10-K (filing date: 2015-02-17).

1 2018 Calculation
Operating profit margin = 100 × Operating profit ÷ Sales of Machinery, Energy & Transportation
= 100 × 8,293 ÷ 51,822 = 16.00%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Caterpillar Inc.’s operating profit margin ratio improved from 2016 to 2017 and from 2017 to 2018.

Net Profit Margin

Caterpillar Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Profit (loss) attributable to common stockholders 6,147  754  (67) 2,102  3,695 
Sales of Machinery, Energy & Transportation 51,822  42,676  35,773  44,147  52,142 
Profitability Ratio
Net profit margin1 11.86% 1.77% -0.19% 4.76% 7.09%
Benchmarks
Net Profit Margin, Competitors2
Illinois Tool Works Inc. 17.36% 11.79% 14.96% 14.17% 20.34%
Net Profit Margin, Sector
Industrial Engineering 13.08% 4.28% 3.99% 6.95%
Net Profit Margin, Industry
Industrials 6.94% 7.55% 8.82% 7.36%

Based on: 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), 10-K (filing date: 2015-02-17).

1 2018 Calculation
Net profit margin = 100 × Profit (loss) attributable to common stockholders ÷ Sales of Machinery, Energy & Transportation
= 100 × 6,147 ÷ 51,822 = 11.86%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Caterpillar Inc.’s net profit margin ratio improved from 2016 to 2017 and from 2017 to 2018.

Return on Equity (ROE)

Caterpillar Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Profit (loss) attributable to common stockholders 6,147  754  (67) 2,102  3,695 
Equity attributable to common stockholders 14,039  13,697  13,137  14,809  16,746 
Profitability Ratio
ROE1 43.79% 5.50% -0.51% 14.19% 22.06%
Benchmarks
ROE, Competitors2
Illinois Tool Works Inc. 78.76% 36.79% 47.84% 36.35% 43.20%
ROE, Sector
Industrial Engineering 50.37% 13.35% 11.32% 19.97%
ROE, Industry
Industrials 22.77% 21.24% 24.02% 17.80%

Based on: 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), 10-K (filing date: 2015-02-17).

1 2018 Calculation
ROE = 100 × Profit (loss) attributable to common stockholders ÷ Equity attributable to common stockholders
= 100 × 6,147 ÷ 14,039 = 43.79%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Caterpillar Inc.’s ROE improved from 2016 to 2017 and from 2017 to 2018.

Return on Assets (ROA)

Caterpillar Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Profit (loss) attributable to common stockholders 6,147  754  (67) 2,102  3,695 
Total assets 78,509  76,962  74,704  78,497  84,681 
Profitability Ratio
ROA1 7.83% 0.98% -0.09% 2.68% 4.36%
Benchmarks
ROA, Competitors2
Illinois Tool Works Inc. 17.24% 10.05% 13.39% 12.07% 16.66%
ROA, Sector
Industrial Engineering 9.33% 2.60% 2.19% 4.25%
ROA, Industry
Industrials 4.68% 4.77% 5.51% 4.25%

Based on: 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), 10-K (filing date: 2015-02-17).

1 2018 Calculation
ROA = 100 × Profit (loss) attributable to common stockholders ÷ Total assets
= 100 × 6,147 ÷ 78,509 = 7.83%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Caterpillar Inc.’s ROA improved from 2016 to 2017 and from 2017 to 2018.