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

Caterpillar Inc. (NYSE:CAT)

Analysis of Profitability Ratios

Beginner level

Profitability Ratios (Summary)

Caterpillar Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Return on Sales
Gross profit margin 27.83% 28.61% 27.24% 20.86% 23.57%
Operating profit margin 16.33% 16.00% 10.32% 1.39% 7.38%
Net profit margin 12.00% 11.86% 1.77% -0.19% 4.76%
Return on Investment
Return on equity (ROE) 41.77% 43.79% 5.50% -0.51% 14.19%
Return on assets (ROA) 7.77% 7.83% 0.98% -0.09% 2.68%

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).

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 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Caterpillar Inc.’s operating profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Caterpillar Inc.’s net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Caterpillar Inc.’s ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
ROA A profitability ratio calculated as net income divided by total assets. Caterpillar Inc.’s ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Gross Profit Margin

Caterpillar Inc., gross profit margin 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)
Gross margin 14,125  14,825  11,627  7,464  10,405 
Sales of Machinery, Energy & Transportation 50,755  51,822  42,676  35,773  44,147 
Profitability Ratio
Gross profit margin1 27.83% 28.61% 27.24% 20.86% 23.57%
Benchmarks
Gross Profit Margin, Competitors2
Illinois Tool Works Inc. 41.97% 41.74% 41.95% 41.94% 41.16%

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
Gross profit margin = 100 × Gross margin ÷ Sales of Machinery, Energy & Transportation
= 100 × 14,125 ÷ 50,755 = 27.83%

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 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Operating Profit Margin

Caterpillar Inc., operating profit margin 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)
Operating profit 8,290  8,293  4,406  498  3,256 
Sales of Machinery, Energy & Transportation 50,755  51,822  42,676  35,773  44,147 
Profitability Ratio
Operating profit margin1 16.33% 16.00% 10.32% 1.39% 7.38%
Benchmarks
Operating Profit Margin, Competitors2
Illinois Tool Works Inc. 24.11% 24.27% 24.41% 22.53% 21.39%
Operating Profit Margin, Sector
Industrial Engineering 18.03% 17.84% 13.86% 7.21% 10.64%
Operating Profit Margin, Industry
Industrials 13.24% 14.13% 13.94% 12.94% 13.66%

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
Operating profit margin = 100 × Operating profit ÷ Sales of Machinery, Energy & Transportation
= 100 × 8,290 ÷ 50,755 = 16.33%

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 2017 to 2018 and from 2018 to 2019.

Net Profit Margin

Caterpillar Inc., net profit margin 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 
Sales of Machinery, Energy & Transportation 50,755  51,822  42,676  35,773  44,147 
Profitability Ratio
Net profit margin1 12.00% 11.86% 1.77% -0.19% 4.76%
Benchmarks
Net Profit Margin, Competitors2
Illinois Tool Works Inc. 17.87% 17.36% 11.79% 14.96% 14.17%
Net Profit Margin, Sector
Industrial Engineering 13.28% 13.08% 4.28% 3.99% 6.95%
Net Profit Margin, Industry
Industrials 7.42% 6.86% 8.15% 8.73% 7.01%

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
Net profit margin = 100 × Profit (loss) attributable to common stockholders ÷ Sales of Machinery, Energy & Transportation
= 100 × 6,093 ÷ 50,755 = 12.00%

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 2017 to 2018 and from 2018 to 2019.

Return on Equity (ROE)

Caterpillar Inc., ROE 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 
Equity attributable to common stockholders 14,588  14,039  13,697  13,137  14,809 
Profitability Ratio
ROE1 41.77% 43.79% 5.50% -0.51% 14.19%
Benchmarks
ROE, Competitors2
Illinois Tool Works Inc. 83.31% 78.76% 36.79% 47.84% 36.35%
ROE, Sector
Industrial Engineering 48.90% 50.37% 13.35% 11.32% 19.97%
ROE, Industry
Industrials 25.37% 24.18% 24.04% 25.10% 17.58%

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
ROE = 100 × Profit (loss) attributable to common stockholders ÷ Equity attributable to common stockholders
= 100 × 6,093 ÷ 14,588 = 41.77%

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

Return on Assets (ROA)

Caterpillar Inc., ROA 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 
Total assets 78,453  78,509  76,962  74,704  78,497 
Profitability Ratio
ROA1 7.77% 7.83% 0.98% -0.09% 2.68%
Benchmarks
ROA, Competitors2
Illinois Tool Works Inc. 16.73% 17.24% 10.05% 13.39% 12.07%
ROA, Sector
Industrial Engineering 9.21% 9.33% 2.60% 2.19% 4.25%
ROA, Industry
Industrials 4.70% 4.60% 5.10% 5.46% 4.00%

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
ROA = 100 × Profit (loss) attributable to common stockholders ÷ Total assets
= 100 × 6,093 ÷ 78,453 = 7.77%

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