Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Caterpillar Inc., profitability ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Return on Sales
Gross profit margin 26.30% 25.47% 27.83% 28.61% 27.24%
Operating profit margin 14.27% 11.67% 16.33% 16.00% 10.32%
Net profit margin 13.47% 7.68% 12.00% 11.86% 1.77%
Return on Investment
Return on equity (ROE) 39.37% 19.56% 41.77% 43.79% 5.50%
Return on assets (ROA) 7.84% 3.83% 7.77% 7.83% 0.98%

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).

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. gross profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Caterpillar Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Caterpillar Inc. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Caterpillar Inc. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
ROA A profitability ratio calculated as net income divided by total assets. Caterpillar Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Gross Profit Margin

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Gross margin 12,675  9,940  14,125  14,825  11,627 
Sales of Machinery, Energy & Transportation 48,188  39,022  50,755  51,822  42,676 
Profitability Ratio
Gross profit margin1 26.30% 25.47% 27.83% 28.61% 27.24%
Benchmarks
Gross Profit Margin, Competitors2
3M Co. 46.84% 48.41% 46.68% 49.09% 49.46%
Boeing Co. 4.84% -9.78% 5.83% 19.42% 18.55%
General Electric Co. 24.19% 17.26% 23.52% 18.38% 18.78%
Honeywell International Inc. 31.98% 32.07% 33.70% 30.52% 31.97%
Lockheed Martin Corp. 13.52% 13.23% 13.99% 13.53% 10.87%
Raytheon Technologies Corp. 19.40% 15.08% 25.93% 24.84% 26.55%

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
Gross profit margin = 100 × Gross margin ÷ Sales of Machinery, Energy & Transportation
= 100 × 12,675 ÷ 48,188 = 26.30%

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. gross profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Operating Profit Margin

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Operating profit 6,878  4,553  8,290  8,293  4,406 
Sales of Machinery, Energy & Transportation 48,188  39,022  50,755  51,822  42,676 
Profitability Ratio
Operating profit margin1 14.27% 11.67% 16.33% 16.00% 10.32%
Benchmarks
Operating Profit Margin, Competitors2
3M Co. 20.84% 22.25% 19.21% 22.00% 24.70%
Boeing Co. -4.66% -21.95% -2.58% 11.85% 11.01%
General Electric Co. 8.58% 5.49% 12.84% 9.54% 9.06%
Honeywell International Inc. 18.03% 17.45% 18.66% 16.04% 17.64%
Lockheed Martin Corp. 13.61% 13.22% 14.29% 13.64% 11.60%
Raytheon Technologies Corp. 7.70% -3.34% 11.64% 12.86% 14.49%
Operating Profit Margin, Sector
Capital Goods 9.86% 4.32% 11.44% 13.20% 12.61%
Operating Profit Margin, Industry
Industrials 11.18% 4.89% 11.95% 13.10% 13.08%

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
Operating profit margin = 100 × Operating profit ÷ Sales of Machinery, Energy & Transportation
= 100 × 6,878 ÷ 48,188 = 14.27%

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. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Net Profit Margin

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

Microsoft Excel
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 
Sales of Machinery, Energy & Transportation 48,188  39,022  50,755  51,822  42,676 
Profitability Ratio
Net profit margin1 13.47% 7.68% 12.00% 11.86% 1.77%
Benchmarks
Net Profit Margin, Competitors2
3M Co. 16.75% 16.73% 14.22% 16.33% 15.35%
Boeing Co. -6.75% -20.42% -0.83% 10.34% 8.78%
General Electric Co. -9.17% 7.81% -5.69% -19.69% -5.11%
Honeywell International Inc. 16.11% 14.64% 16.73% 16.18% 4.08%
Lockheed Martin Corp. 9.42% 10.45% 10.42% 9.39% 3.92%
Raytheon Technologies Corp. 6.00% -6.22% 7.19% 7.92% 7.61%
Net Profit Margin, Sector
Capital Goods 4.55% 2.89% 5.46% 3.62% 3.75%
Net Profit Margin, Industry
Industrials 6.98% 2.18% 6.04% 5.42% 6.67%

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
Net profit margin = 100 × Profit attributable to common stockholders ÷ Sales of Machinery, Energy & Transportation
= 100 × 6,489 ÷ 48,188 = 13.47%

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. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Return on Equity (ROE)

Caterpillar Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
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 
Equity attributable to common shareholders 16,484  15,331  14,588  14,039  13,697 
Profitability Ratio
ROE1 39.37% 19.56% 41.77% 43.79% 5.50%
Benchmarks
ROE, Competitors2
3M Co. 39.35% 41.84% 45.41% 54.60% 42.01%
Boeing Co. 3,085.55% 2,309.01%
General Electric Co. -16.17% 16.04% -17.58% -72.16% -9.00%
Honeywell International Inc. 29.85% 27.23% 33.22% 37.21% 9.58%
Lockheed Martin Corp. 57.62% 113.60% 199.23% 361.98%
Raytheon Technologies Corp. 5.29% -4.88% 13.25% 13.70% 15.37%
ROE, Sector
Capital Goods 10.92% 7.30% 21.31% 14.74% 11.93%
ROE, Industry
Industrials 20.09% 6.64% 24.51% 21.81% 21.48%

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
ROE = 100 × Profit attributable to common stockholders ÷ Equity attributable to common shareholders
= 100 × 6,489 ÷ 16,484 = 39.37%

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. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Return on Assets (ROA)

Caterpillar Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
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 
Total assets 82,793  78,324  78,453  78,509  76,962 
Profitability Ratio
ROA1 7.84% 3.83% 7.77% 7.83% 0.98%
Benchmarks
ROA, Competitors2
3M Co. 12.58% 11.37% 10.23% 14.65% 12.79%
Boeing Co. -3.03% -7.80% -0.48% 8.91% 8.88%
General Electric Co. -3.28% 2.25% -1.87% -7.23% -1.53%
Honeywell International Inc. 8.60% 7.40% 10.47% 11.71% 2.79%
Lockheed Martin Corp. 12.41% 13.47% 13.11% 11.24% 4.30%
Raytheon Technologies Corp. 2.39% -2.17% 3.96% 3.93% 4.70%
ROA, Sector
Capital Goods 2.34% 1.27% 2.99% 2.14% 2.06%
ROA, Industry
Industrials 4.11% 1.10% 3.73% 3.54% 4.11%

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
ROA = 100 × Profit attributable to common stockholders ÷ Total assets
= 100 × 6,489 ÷ 82,793 = 7.84%

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. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.