Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).

Ratios (Summary)
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on Equity (ROE)
Return on Assets (ROA)

Caterpillar Inc., profitability ratios (quarterly data)

		Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	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
	Return on Sales
	Gross profit margin
	Operating profit margin
	Net profit margin
	Return on Investment
	Return on equity (ROE)
	Return on assets (ROA)

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 deteriorated from Q3 2018 to Q4 2018 and from Q4 2018 to Q1 2019.
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	Caterpillar Inc.’s operating profit margin improved from Q3 2018 to Q4 2018 and from Q4 2018 to Q1 2019.
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	Caterpillar Inc.’s net profit margin improved from Q3 2018 to Q4 2018 and from Q4 2018 to Q1 2019.

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	Caterpillar Inc.’s ROE improved from Q3 2018 to Q4 2018 but then slightly deteriorated from Q4 2018 to Q1 2019.
ROA	A profitability ratio calculated as net income divided by total assets.	Caterpillar Inc.’s ROA improved from Q3 2018 to Q4 2018 and from Q4 2018 to Q1 2019.

Caterpillar Inc., gross profit margin calculation (quarterly data)

		Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	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
	Selected Financial Data (USD $ in millions)
	Gross margin
	Sales of Machinery, Energy & Transportation
	Ratio
	Gross profit margin¹

Q1 2019 Calculations

¹ Gross profit margin = 100 × (Gross margin_{Q1 2019} + Gross margin_{Q4 2018} + Gross margin_{Q3 2018} + Gross margin_{Q2 2018}) ÷ (Sales of Machinery, Energy & Transportation_{Q1 2019} + Sales of Machinery, Energy & Transportation_{Q4 2018} + Sales of Machinery, Energy & Transportation_{Q3 2018} + Sales of Machinery, Energy & Transportation_{Q2 2018})
= 100 × ( hidden + hidden + hidden + hidden ) ÷ ( hidden + hidden + hidden + hidden ) = hidden

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 deteriorated from Q3 2018 to Q4 2018 and from Q4 2018 to Q1 2019.

Caterpillar Inc., operating profit margin calculation (quarterly data)

		Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	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
	Selected Financial Data (USD $ in millions)
	Operating profit
	Sales of Machinery, Energy & Transportation
	Ratio
	Operating profit margin¹

Q1 2019 Calculations

¹ Operating profit margin = 100 × (Operating profit_{Q1 2019} + Operating profit_{Q4 2018} + Operating profit_{Q3 2018} + Operating profit_{Q2 2018}) ÷ (Sales of Machinery, Energy & Transportation_{Q1 2019} + Sales of Machinery, Energy & Transportation_{Q4 2018} + Sales of Machinery, Energy & Transportation_{Q3 2018} + Sales of Machinery, Energy & Transportation_{Q2 2018})
= 100 × ( hidden + hidden + hidden + hidden ) ÷ ( hidden + hidden + hidden + hidden ) = hidden

Ratio	Description	The company
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	Caterpillar Inc.’s operating profit margin improved from Q3 2018 to Q4 2018 and from Q4 2018 to Q1 2019.

Caterpillar Inc., net profit margin calculation (quarterly data)

		Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	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
	Selected Financial Data (USD $ in millions)
	Profit (loss) attributable to common stockholders
	Sales of Machinery, Energy & Transportation
	Ratio
	Net profit margin¹

Q1 2019 Calculations

¹ Net profit margin = 100 × (Profit (loss) attributable to common stockholders_{Q1 2019} + Profit (loss) attributable to common stockholders_{Q4 2018} + Profit (loss) attributable to common stockholders_{Q3 2018} + Profit (loss) attributable to common stockholders_{Q2 2018}) ÷ (Sales of Machinery, Energy & Transportation_{Q1 2019} + Sales of Machinery, Energy & Transportation_{Q4 2018} + Sales of Machinery, Energy & Transportation_{Q3 2018} + Sales of Machinery, Energy & Transportation_{Q2 2018})
= 100 × ( hidden + hidden + hidden + hidden ) ÷ ( hidden + hidden + hidden + hidden ) = hidden

Ratio	Description	The company
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	Caterpillar Inc.’s net profit margin improved from Q3 2018 to Q4 2018 and from Q4 2018 to Q1 2019.

Caterpillar Inc., ROE calculation (quarterly data)

		Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	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
	Selected Financial Data (USD $ in millions)
	Profit (loss) attributable to common stockholders
	Shareholders’ equity attributable to common shareholders
	Ratio
	ROE¹

Q1 2019 Calculations

¹ ROE = 100 × (Profit (loss) attributable to common stockholders_{Q1 2019} + Profit (loss) attributable to common stockholders_{Q4 2018} + Profit (loss) attributable to common stockholders_{Q3 2018} + Profit (loss) attributable to common stockholders_{Q2 2018}) ÷ Shareholders’ equity attributable to common shareholders
= 100 × ( hidden + hidden + hidden + hidden ) ÷ hidden = hidden

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	Caterpillar Inc.’s ROE improved from Q3 2018 to Q4 2018 but then slightly deteriorated from Q4 2018 to Q1 2019.

Caterpillar Inc., ROA calculation (quarterly data)

		Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	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
	Selected Financial Data (USD $ in millions)
	Profit (loss) attributable to common stockholders
	Total assets
	Ratio
	ROA¹

Q1 2019 Calculations

¹ ROA = 100 × (Profit (loss) attributable to common stockholders_{Q1 2019} + Profit (loss) attributable to common stockholders_{Q4 2018} + Profit (loss) attributable to common stockholders_{Q3 2018} + Profit (loss) attributable to common stockholders_{Q2 2018}) ÷ Total assets
= 100 × ( hidden + hidden + hidden + hidden ) ÷ hidden = hidden

Ratio	Description	The company
ROA	A profitability ratio calculated as net income divided by total assets.	Caterpillar Inc.’s ROA improved from Q3 2018 to Q4 2018 and from Q4 2018 to Q1 2019.

	Caterpillar Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

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Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Caterpillar Inc. (CAT)

Profitability Analysis
Quarterly Data

Ratios (Summary)

Gross Profit Margin

Operating Profit Margin

Net Profit Margin

Return on Equity (ROE)

Return on Assets (ROA)

Caterpillar Inc. (CAT)

Profitability AnalysisQuarterly Data

Ratios (Summary)

Gross Profit Margin

Operating Profit Margin

Net Profit Margin

Return on Equity (ROE)

Return on Assets (ROA)

Profitability Analysis
Quarterly Data