Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Caterpillar Inc., profitability ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The financial indicators exhibit a clear upward trend over the observed periods, reflecting progressive improvement in profitability and efficiency metrics.
- Gross Profit Margin
- The gross profit margin has shown consistent growth from 25.47% in March 2020 to peak around 34.49% in December 2024 before slightly dipping to 33.92% in March 2025. This trend indicates improved cost management or pricing strategies enhancing the company's core profitability over time.
- Operating Profit Margin
- The operating profit margin similarly increased from 11.67% in March 2020 to a high of 21.58% in June 2024. It experienced a slight decline towards 20.29% by the end of the series in March 2025. This progression highlights strengthening operations with expanding operating income relative to revenue, despite some recent margin tightening.
- Net Profit Margin
- Net profit margin advanced from 7.68% in March 2020 up to a peak of 17.65% in March 2024, marginally decreasing to 16.63% in March 2025. The rising net margin trend signals enhanced bottom-line profitability, suggesting effective control of expenses beyond operating costs such as financing and taxes.
- Return on Equity (ROE)
- ROE showed a marked improvement, escalating from 19.56% in March 2020 to a peak exceeding 64% in September 2024. Despite a slight correction thereafter, ROE remains above 55% late in the timeline. This strong upward trajectory evidences highly efficient utilization of shareholder equity in generating profits, although the volatility suggests sensitivity to underlying profit fluctuations or leverage effects.
- Return on Assets (ROA)
- ROA also rose steadily from 3.83% in March 2020 to over 13% during 2024, before a moderate decline to 11.7% by March 2025. This increase indicates improved asset profitability and overall operational efficiency, with the reduction in the final period warranting attention for potential changes in asset base or profit generation.
In summary, the company's profitability margins and returns have strengthened considerably over the analyzed timeframe, reflecting effective operational management and capital utilization. Minor declines observed towards the end of the period suggest the need for monitoring possible emerging challenges impacting margins or asset returns.
Return on Sales
Return on Investment
Gross Profit Margin
Caterpillar Inc., gross profit margin calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Gross margin | 4,413) | 5,011) | 5,165) | 5,690) | 5,298) | 5,221) | 5,405) | 5,480) | 4,996) | 4,257) | 4,076) | 3,564) | 3,327) | 3,094) | 3,090) | 3,312) | 3,179) | 2,786) | 2,309) | 2,197) | 2,648) | |||||||
| Sales of Machinery, Energy & Transportation | 13,378) | 15,332) | 15,231) | 15,840) | 14,960) | 16,237) | 15,988) | 16,545) | 15,099) | 15,871) | 14,278) | 13,539) | 12,886) | 13,097) | 11,707) | 12,193) | 11,191) | 10,570) | 9,228) | 9,310) | 9,914) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Gross profit margin1 | 33.92% | 34.49% | 34.33% | 34.29% | 33.59% | 33.04% | 31.71% | 30.44% | 28.74% | 26.91% | 26.14% | 25.52% | 25.71% | 26.30% | 27.08% | 26.83% | 25.98% | 25.47% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | -2.09% | -2.99% | 3.13% | 9.47% | 10.04% | 9.93% | 9.09% | 6.65% | 7.20% | 5.26% | -1.41% | 2.74% | 3.20% | 4.84% | -0.25% | -1.35% | -7.82% | -9.78% | — | — | — | |||||||
| Eaton Corp. plc | 38.45% | 38.20% | 37.83% | 37.53% | 37.06% | 36.36% | 35.54% | 34.51% | 33.64% | 33.19% | 32.83% | 32.55% | 32.36% | 32.28% | 32.14% | 32.23% | 30.80% | 30.52% | — | — | — | |||||||
| GE Aerospace | 31.87% | 30.79% | 27.00% | 24.74% | 22.97% | 21.95% | 23.26% | 23.29% | 24.24% | 24.55% | 24.52% | 25.22% | 24.26% | 24.19% | 24.97% | 22.43% | 18.80% | 17.26% | — | — | — | |||||||
| Honeywell International Inc. | 38.06% | 38.09% | 37.60% | 37.56% | 37.46% | 37.28% | 38.03% | 37.79% | 37.36% | 36.99% | 35.56% | 34.22% | 32.95% | 31.98% | 32.34% | 32.06% | 31.52% | 32.07% | — | — | — | |||||||
| Lockheed Martin Corp. | 10.11% | 9.75% | 11.97% | 11.91% | 12.10% | 12.55% | 12.54% | 12.70% | 12.74% | 12.56% | 12.99% | 13.39% | 13.36% | 13.52% | 13.34% | 13.00% | 13.26% | 13.23% | — | — | — | |||||||
| RTX Corp. | 19.53% | 19.09% | 19.21% | 16.38% | 17.01% | 17.54% | 17.36% | 20.43% | 20.53% | 20.38% | 20.49% | 20.17% | 19.94% | 19.40% | 17.59% | 15.79% | 13.98% | 15.08% | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Gross profit margin = 100
× (Gross marginQ1 2025
+ Gross marginQ4 2024
+ Gross marginQ3 2024
+ Gross marginQ2 2024)
÷ (Sales of Machinery, Energy & TransportationQ1 2025
+ Sales of Machinery, Energy & TransportationQ4 2024
+ Sales of Machinery, Energy & TransportationQ3 2024
+ Sales of Machinery, Energy & TransportationQ2 2024)
= 100 × (4,413 + 5,011 + 5,165 + 5,690)
÷ (13,378 + 15,332 + 15,231 + 15,840)
= 33.92%
2 Click competitor name to see calculations.
The gross margin values demonstrate a general upward trend from March 31, 2020, to June 30, 2023, peaking at 5,480 million US dollars. After this peak, the gross margin starts to decline, falling to 4,413 million US dollars by the end of March 31, 2025. This pattern suggests initial strong profitability gains followed by some weakening in the later periods.
Sales of Machinery, Energy & Transportation reveal fluctuations but overall growth over the observed quarters. Starting at 9,914 million US dollars in March 31, 2020, sales increase steadily with some quarters showing notable jumps, such as between December 31, 2020, and March 31, 2023, where values rise from 10,570 million to 15,099 million US dollars. However, sales decrease after the peak in June 30, 2023, falling to 13,378 million US dollars by March 31, 2025, indicating some softening in demand or market conditions towards the later periods.
The gross profit margin percentage, available starting from December 31, 2020, shows consistent improvement across quarters. Beginning at 25.47%, it climbs steadily to a peak of 34.49% by September 30, 2024. Following this peak, a slight decline is observed, with the margin decreasing to 33.92% by March 31, 2025. This increase in margin percentage indicates improving cost efficiency or pricing power over time, although the marginal decrease at the end could suggest emerging pressures on profitability.
- Summary of trends
- Gross margins increased overall between 2020 and mid-2023, followed by a decline towards early 2025.
- Sales experienced growth with some volatility, peaking around mid-2023 and declining thereafter.
- Gross profit margins improved significantly from late 2020 to late 2024, signaling stronger profitability, with a slight decrease observed as of early 2025.
- Insights
- The data indicates that the company improved its profitability and sales positions over the first part of the period analyzed but faced a downturn in the more recent quarters.
- The decreasing trend in both sales and gross margin after mid-2023 may point to market challenges, cost increases, or competitive pressures.
- Despite the decline in sales and gross margin dollars in the later quarters, the gross profit margin percentage remained relatively high, suggesting the company's ability to manage costs or pricing strategies effectively during that period.
Operating Profit Margin
Caterpillar Inc., operating profit margin calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Operating profit | 2,579) | 2,924) | 3,147) | 3,482) | 3,519) | 3,134) | 3,449) | 3,652) | 2,731) | 1,680) | 2,425) | 1,944) | 1,855) | 1,611) | 1,664) | 1,789) | 1,814) | 1,380) | 985) | 784) | 1,404) | |||||||
| Sales of Machinery, Energy & Transportation | 13,378) | 15,332) | 15,231) | 15,840) | 14,960) | 16,237) | 15,988) | 16,545) | 15,099) | 15,871) | 14,278) | 13,539) | 12,886) | 13,097) | 11,707) | 12,193) | 11,191) | 10,570) | 9,228) | 9,310) | 9,914) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Operating profit margin1 | 20.29% | 21.30% | 21.33% | 21.55% | 21.58% | 20.30% | 18.13% | 16.97% | 14.94% | 13.97% | 14.56% | 13.81% | 13.87% | 14.27% | 14.56% | 13.82% | 12.32% | 11.67% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | -14.63% | -16.10% | -9.08% | -2.31% | -0.93% | -0.99% | -1.86% | -4.62% | -3.58% | -5.33% | -11.99% | -6.98% | -6.53% | -4.66% | -10.80% | -12.18% | -20.36% | -21.95% | — | — | — | |||||||
| Eaton Corp. plc | 19.08% | 18.62% | 18.23% | 17.96% | 17.28% | 16.75% | 16.28% | 15.48% | 14.85% | 14.55% | 13.90% | 16.33% | 15.97% | 15.69% | 15.50% | 12.54% | 10.81% | 11.45% | — | — | — | |||||||
| GE Aerospace | 25.46% | 23.29% | 16.88% | 13.80% | 10.44% | 8.49% | 8.08% | 6.92% | 7.40% | 6.05% | 7.05% | 8.12% | 7.31% | 8.58% | 7.86% | 6.82% | 4.72% | 5.49% | — | — | — | |||||||
| Honeywell International Inc. | 19.26% | 19.33% | 19.23% | 19.68% | 19.65% | 19.32% | 20.09% | 19.73% | 19.05% | 18.12% | 17.55% | 17.31% | 17.37% | 18.03% | 18.36% | 17.95% | 16.90% | 17.45% | — | — | — | |||||||
| Lockheed Martin Corp. | 10.24% | 9.87% | 12.08% | 11.98% | 12.20% | 12.59% | 12.57% | 12.80% | 12.78% | 12.65% | 13.15% | 13.47% | 13.50% | 13.61% | 13.50% | 13.19% | 13.19% | 13.22% | — | — | — | |||||||
| RTX Corp. | 8.20% | 8.10% | 7.94% | 3.94% | 5.32% | 5.17% | 4.79% | 8.63% | 8.73% | 8.07% | 7.93% | 7.81% | 7.75% | 7.70% | 5.93% | 4.61% | -3.59% | -3.34% | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Operating profit margin = 100
× (Operating profitQ1 2025
+ Operating profitQ4 2024
+ Operating profitQ3 2024
+ Operating profitQ2 2024)
÷ (Sales of Machinery, Energy & TransportationQ1 2025
+ Sales of Machinery, Energy & TransportationQ4 2024
+ Sales of Machinery, Energy & TransportationQ3 2024
+ Sales of Machinery, Energy & TransportationQ2 2024)
= 100 × (2,579 + 2,924 + 3,147 + 3,482)
÷ (13,378 + 15,332 + 15,231 + 15,840)
= 20.29%
2 Click competitor name to see calculations.
- Operating Profit
- The operating profit displayed a notable fluctuation over the observed periods. From March 31, 2020, to June 30, 2020, there was a significant decline from 1404 million US dollars to 784 million US dollars, likely reflecting market challenges or external disruptions. Following this low, the profit generally trended upward, peaking at 3652 million US dollars on June 30, 2023. After this peak, there was a gradual decrease through December 31, 2024, ending at 2579 million US dollars by March 31, 2025. This pattern suggests periods of recovery and growth interspersed with some downturns.
- Sales of Machinery, Energy & Transportation
- Sales figures exhibited an overall upward trajectory with intermittent variations. Starting at 9914 million US dollars on March 31, 2020, sales experienced some declines in mid-2020 but recovered by the end of that year. The trend continued with an upward movement reaching a high point of 16545 million US dollars on June 30, 2023. Following the peak, the sales hovered slightly lower, ending at 13378 million US dollars on March 31, 2025. The fluctuations may indicate seasonal sales effects, market demand variability, or supply chain factors impacting the business.
- Operating Profit Margin
- The operating profit margin, available from March 31, 2021, onwards, demonstrated a consistent positive progression. Initially recorded at 11.67% in March 2021, it rose steadily through the years, surpassing 20% in multiple quarters from December 2023 to December 2024. The margin peaked at 21.58% on June 30, 2024, before experiencing a slight decline to 20.29% by March 31, 2025. This upward trend in profitability margin suggests improved operational efficiency or better cost management relative to sales, despite fluctuations in absolute profit and sales volumes.
- Summary Insight
- The data indicates that while absolute operating profits and sales experienced variability, the company's ability to maintain and improve operating profit margins strengthened over the period. This may reflect strategic pricing, enhanced productivity, or cost controls. Notwithstanding the recent declines in absolute profit and sales figures towards the latest quarters, the sustained high margins point to a resilient operational model capable of generating substantial profit relative to revenue. Ongoing monitoring of these trends will be essential to understand potential cyclical factors or emerging challenges.
Net Profit Margin
Caterpillar Inc., net profit margin calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Profit attributable to common stockholders | 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) | 780) | 668) | 458) | 1,092) | |||||||
| Sales of Machinery, Energy & Transportation | 13,378) | 15,332) | 15,231) | 15,840) | 14,960) | 16,237) | 15,988) | 16,545) | 15,099) | 15,871) | 14,278) | 13,539) | 12,886) | 13,097) | 11,707) | 12,193) | 11,191) | 10,570) | 9,228) | 9,310) | 9,914) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Net profit margin1 | 16.63% | 17.59% | 17.15% | 17.46% | 17.65% | 16.18% | 14.35% | 13.53% | 12.10% | 11.85% | 13.70% | 13.19% | 13.02% | 13.47% | 11.28% | 10.17% | 8.53% | 7.68% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | -16.58% | -17.77% | -10.88% | -4.68% | -2.81% | -2.86% | -3.74% | -6.08% | -5.86% | -7.41% | -13.75% | -8.69% | -8.00% | -6.75% | -13.50% | -14.30% | -20.87% | -20.42% | — | — | — | |||||||
| Eaton Corp. plc | 15.55% | 15.25% | 15.31% | 15.12% | 14.38% | 13.87% | 13.24% | 12.30% | 12.00% | 11.86% | 11.36% | 11.70% | 11.21% | 10.92% | 10.60% | 9.86% | 8.05% | 7.90% | — | — | — | |||||||
| GE Aerospace | 19.41% | 18.67% | 14.28% | 9.25% | 5.96% | 14.68% | 15.08% | 13.91% | 12.35% | 0.31% | -8.10% | -6.18% | -6.70% | -9.17% | -0.06% | -3.39% | -4.68% | 7.81% | — | — | — | |||||||
| Honeywell International Inc. | 14.51% | 14.82% | 15.01% | 15.49% | 15.52% | 15.43% | 14.87% | 15.08% | 14.54% | 14.00% | 15.38% | 14.74% | 15.30% | 16.11% | 15.80% | 14.65% | 14.17% | 14.64% | — | — | — | |||||||
| Lockheed Martin Corp. | 7.66% | 7.51% | 9.36% | 9.48% | 9.73% | 10.24% | 10.29% | 10.48% | 8.60% | 8.69% | 9.07% | 7.33% | 9.45% | 9.42% | 9.13% | 10.69% | 10.53% | 10.45% | — | — | — | |||||||
| RTX Corp. | 5.63% | 5.91% | 5.97% | 3.12% | 4.90% | 4.64% | 4.76% | 7.88% | 8.08% | 7.75% | 6.76% | 6.84% | 6.47% | 6.00% | 5.20% | 3.51% | -4.44% | -6.22% | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Net profit margin = 100
× (Profit attributable to common stockholdersQ1 2025
+ Profit attributable to common stockholdersQ4 2024
+ Profit attributable to common stockholdersQ3 2024
+ Profit attributable to common stockholdersQ2 2024)
÷ (Sales of Machinery, Energy & TransportationQ1 2025
+ Sales of Machinery, Energy & TransportationQ4 2024
+ Sales of Machinery, Energy & TransportationQ3 2024
+ Sales of Machinery, Energy & TransportationQ2 2024)
= 100 × (2,003 + 2,791 + 2,464 + 2,681)
÷ (13,378 + 15,332 + 15,231 + 15,840)
= 16.63%
2 Click competitor name to see calculations.
The financial data reveals a series of noteworthy trends across profitability, sales, and profit margins over multiple quarters.
- Profit Attributable to Common Stockholders
- The profit figures demonstrate fluctuations over the observed period. Starting with $1,092 million in March 2020, profits dropped to a low of $458 million in June 2020, likely reflecting early impacts on operations or market conditions. A steady recovery occurred throughout 2020 and 2021, with profits reaching $2,120 million by December 2021. During 2022, profits remained volatile but generally maintained a strong range between approximately $1.5 billion and $2 billion. Notably, in 2023 profits surged, peaking at $2,922 million in June 2023, followed by a mild decline and stabilization around $2.4 billion to $2.8 billion in subsequent quarters. Toward the latest periods in 2024 and early 2025, profits displayed some softness, falling to approximately $2,000 million in March 2025, which might indicate emerging challenges or market adjustments.
- Sales of Machinery, Energy & Transportation
- The sales volumes exhibit a generally increasing trend with periodic fluctuations. Beginning at $9,914 million in the first quarter of 2020, sales declined modestly into mid-2020, mirroring the profit drop. From late 2020 onward, sales increased notably, reaching a first peak of $15,871 million in December 2022, indicating expansion or higher demand. The data through 2023 and early 2024 shows continued strong sales, fluctuating between $13,378 million and $16,545 million, suggesting maintained market strength despite some volatility. Toward the latest quarters in 2024 and early 2025, a slight decline in sales is observed, ending at $13,378 million in March 2025, which may correlate with the reduced profit levels noted.
- Net Profit Margin (%)
- Profit margins reveal a consistent and solid upward trajectory once reported from the second quarter of 2020. Margins rose from 7.68% to a substantial 17.59% by December 2024, demonstrating improvements in operational efficiency, cost management, or pricing strategies. The margin remained relatively stable, fluctuating narrowly above 16% in early 2025, reflecting sustained profitability despite some profit and sales volatility. This steady improvement in margin indicates a positive trend in the company’s ability to convert sales into net earnings.
In summary, the data portrays a recovery and growth phase following an early 2020 downturn, with profits and sales reaching new peaks by late 2023. Profit margins have concurrently improved, indicating enhanced profitability efficiency. However, the later quarters into early 2025 show some softness in both profits and sales, which may warrant further examination concerning market or operational factors.
Return on Equity (ROE)
Caterpillar Inc., ROE calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Profit attributable to common stockholders | 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) | 780) | 668) | 458) | 1,092) | |||||||
| Shareholders’ equity attributable to common shareholders | 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) | 15,331) | 14,949) | 13,734) | 14,197) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROE1 | 55.01% | 55.37% | 55.04% | 64.26% | 63.77% | 53.02% | 44.48% | 45.85% | 39.18% | 42.25% | 47.28% | 42.96% | 38.07% | 39.37% | 30.90% | 26.09% | 20.73% | 19.56% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Eaton Corp. plc | 21.27% | 20.52% | 19.71% | 18.99% | 17.63% | 16.90% | 16.29% | 15.10% | 14.72% | 14.45% | 14.26% | 14.12% | 13.35% | 13.06% | 12.95% | 12.23% | 9.54% | 9.44% | — | — | — | |||||||
| GE Aerospace | 36.34% | 33.90% | 33.11% | 25.51% | 11.77% | 34.63% | 35.27% | 30.77% | 27.72% | 0.62% | -18.56% | -12.75% | -12.20% | -16.17% | -0.11% | -7.29% | -9.82% | 16.04% | — | — | — | |||||||
| Honeywell International Inc. | 32.59% | 30.64% | 32.65% | 34.13% | 34.81% | 35.68% | 31.42% | 31.52% | 30.89% | 29.74% | 30.36% | 28.96% | 28.58% | 29.85% | 30.67% | 27.73% | 25.71% | 27.23% | — | — | — | |||||||
| Lockheed Martin Corp. | 82.34% | 84.26% | 92.71% | 109.09% | 101.89% | 101.24% | 75.11% | 76.41% | 58.97% | 61.86% | 49.05% | 41.16% | 62.10% | 57.62% | 62.90% | 109.51% | 110.16% | 113.60% | — | — | — | |||||||
| RTX Corp. | 7.48% | 7.94% | 7.72% | 3.83% | 5.75% | 5.34% | 4.59% | 7.67% | 7.61% | 7.16% | 6.36% | 6.34% | 5.79% | 5.29% | 4.65% | 3.07% | -3.74% | -4.88% | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
ROE = 100
× (Profit attributable to common stockholdersQ1 2025
+ Profit attributable to common stockholdersQ4 2024
+ Profit attributable to common stockholdersQ3 2024
+ Profit attributable to common stockholdersQ2 2024)
÷ Shareholders’ equity attributable to common shareholders
= 100 × (2,003 + 2,791 + 2,464 + 2,681)
÷ 18,067 = 55.01%
2 Click competitor name to see calculations.
The profit attributable to common stockholders has exhibited a fluctuating yet generally upward trend over the observed period. Starting at 1,092 million US dollars in the first quarter of 2020, profits declined in the early quarters of 2020, reaching a low of 458 million in the second quarter of that year. Subsequently, there was a recovery with profits rising steadily, peaking at 2,120 million US dollars in the fourth quarter of 2021. The profits then showed variability but remained elevated, with notable peaks such as 2,922 million in the second quarter of 2023 and 2,791 million in the fourth quarter of 2024. However, towards the last reported quarter in March 2025, profits decreased to 2,003 million US dollars, indicating some volatility in recent results.
Shareholders’ equity attributable to common shareholders showed moderate growth with some fluctuations during the period. Beginning at 14,197 million US dollars in the first quarter of 2020, equity increased to a peak of 20,489 million by the third quarter of 2023. After this peak, equity experienced a decline, reaching 18,067 million US dollars by the last quarter reported (March 2025). This pattern suggests some variability in equity levels, possibly influenced by profits, dividend policies, or other capital actions.
The return on equity (ROE) data, available starting in the first quarter of 2021, reveals a strong and increasing trend over time. Initial ROE figures began at 19.56% and demonstrated a steady upward trajectory, reaching extremely high levels above 50% during 2023 and continuing through 2024, peaking at 64.26% in the third quarter of 2024. The final reported ROE was slightly lower but sustained at 55.01% in the first quarter of 2025. This significant increase in ROE indicates improved profitability relative to shareholders’ equity, showing efficient use of equity capital and strong earnings performance in recent years.
In summary, the company has shown resilience and strength in profit generation after an initial downturn in early 2020, with profits reaching multi-year highs by mid-2023. Shareholders' equity growth has been less pronounced and exhibits more volatility in recent quarters. The pronounced increase in ROE reflects enhanced profitability and capital efficiency over the period examined.
- Profit attributable to common stockholders
- Fluctuated in 2020 with early declines; demonstrated strong recovery and growth post-2020, peaking at various points, especially mid-2023; some volatility in recent quarters, ending lower in Q1 2025 compared to peak periods.
- Shareholders’ equity attributable to common shareholders
- General upward trend with growth until Q3 2023; followed by declines towards Q1 2025, indicating changes in capital structure or return of value to shareholders.
- Return on Equity (ROE)
- Strong and consistent upward trend from around 20% in early 2021 to peaks above 60% in 2024; slight decline but maintained above 50% in early 2025, signifying significant improvement in profitability relative to equity.
Return on Assets (ROA)
Caterpillar Inc., ROA calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Profit attributable to common stockholders | 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) | 780) | 668) | 458) | 1,092) | |||||||
| Total assets | 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) | 78,324) | 76,741) | 76,566) | 75,894) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROA1 | 11.70% | 12.30% | 12.38% | 13.21% | 13.43% | 11.81% | 10.50% | 9.79% | 8.50% | 8.18% | 9.11% | 8.33% | 7.90% | 7.84% | 6.37% | 5.37% | 4.26% | 3.83% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | -7.36% | -7.56% | -5.79% | -2.41% | -1.60% | -1.62% | -2.11% | -3.32% | -3.03% | -3.60% | -6.14% | -3.90% | -3.60% | -3.03% | -5.77% | -5.92% | -7.85% | -7.80% | — | — | — | |||||||
| Eaton Corp. plc | 10.04% | 9.89% | 9.60% | 9.27% | 8.83% | 8.37% | 8.03% | 7.37% | 7.23% | 7.03% | 6.67% | 6.58% | 6.30% | 6.30% | 6.06% | 5.12% | 4.20% | 4.43% | — | — | — | |||||||
| GE Aerospace | 5.64% | 5.32% | 4.93% | 3.85% | 2.14% | 5.81% | 6.45% | 5.89% | 5.33% | 0.12% | -3.23% | -2.38% | -2.48% | -3.28% | -0.02% | -1.03% | -1.34% | 2.25% | — | — | — | |||||||
| Honeywell International Inc. | 7.57% | 7.59% | 7.73% | 8.34% | 8.72% | 9.20% | 8.83% | 8.75% | 8.73% | 7.97% | 8.92% | 8.16% | 8.29% | 8.60% | 8.53% | 7.78% | 7.28% | 7.40% | — | — | — | |||||||
| Lockheed Martin Corp. | 9.71% | 9.59% | 12.02% | 12.23% | 12.33% | 13.19% | 12.29% | 12.39% | 10.41% | 10.84% | 11.28% | 9.09% | 12.06% | 12.41% | 11.69% | 13.71% | 13.52% | 13.47% | — | — | — | |||||||
| RTX Corp. | 2.79% | 2.93% | 2.86% | 1.40% | 2.17% | 1.97% | 1.96% | 3.43% | 3.43% | 3.27% | 2.82% | 2.81% | 2.63% | 2.39% | 2.09% | 1.37% | -1.67% | -2.17% | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
ROA = 100
× (Profit attributable to common stockholdersQ1 2025
+ Profit attributable to common stockholdersQ4 2024
+ Profit attributable to common stockholdersQ3 2024
+ Profit attributable to common stockholdersQ2 2024)
÷ Total assets
= 100 × (2,003 + 2,791 + 2,464 + 2,681)
÷ 84,974 = 11.70%
2 Click competitor name to see calculations.
- Profit attributable to common stockholders
- The profit figures demonstrate considerable volatility over the periods analyzed. Starting at $1,092 million in March 2020, profits declined sharply to $458 million in June 2020, reflecting a significant contraction potentially linked to external factors affecting the economy during that time. A recovery trend followed, with profits generally increasing and peaking at $2,922 million in June 2023. Subsequently, the profit levels exhibited a downward trend, decreasing to $2,003 million by March 2025. Overall, the profit pattern indicates cyclical fluctuations with a notable peak around mid-2023, followed by a gradual decline.
- Total assets
- Total assets showed a gradual but steady increase from $75,894 million in March 2020 to a peak of $87,764 million in December 2024, indicating moderate asset growth over the period. However, a slight decline occurred in the final period measured, dropping to $84,974 million by March 2025. This trend suggests ongoing investment or expansion in asset base, with some recent contraction noted towards the end of the timeline.
- Return on Assets (ROA)
- ROA data is only available from December 2020 onwards, showing an upward trajectory from 3.83% to a high of 13.43% in June 2024. This improvement indicates increasing efficiency in utilizing assets to generate profit over time. However, after this peak, ROA declined slightly to 11.7% by March 2025. The rising ROA during most of the period reflects improved operational performance and profitability relative to the asset base, but the slight decline near the end may warrant further observation.
- Overall Analysis
- Across the timeline, profit trends show significant fluctuations with cyclical peaks and troughs, while total assets maintain a generally increasing trend, indicating asset growth strategies. The enhancing ROA suggests progressively better asset utilization, although recent minor downturns in both profit and ROA could imply emerging challenges or market adjustments. The data reveals a general improvement in profitability and operational efficiency through 2023 and early 2024, followed by some moderation in financial performance in the most recent quarters.