Profitability Analysis
Quarterly Data

Difficulty: Beginner

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


Ratios (Summary)

Caterpillar Inc., profitability ratios (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Return on Sales
Gross profit margin 28.10% 27.24% 24.55% 22.96% 21.81% 20.86% 22.19% 22.16% 22.57% 23.57% 23.81% 24.22% 24.10% 23.73% 23.87% 23.48% 23.11% 22.71% % % %
Operating profit margin 13.34% 10.32% 5.04% 2.39% 1.17% 1.39% 4.42% 4.81% 5.43% 7.38% 9.37% 10.26% 10.57% 10.22% 10.93% 10.97% 11.02% 10.68% % % %
Net profit margin 4.87% 1.77% 2.24% 0.29% -0.40% -0.19% 2.73% 2.82% 3.08% 4.76% 6.22% 7.22% 7.53% 7.09% 7.54% 7.41% 7.27% 7.19% % % %
Return on Investment
Return on equity (ROE) 14.65% 5.50% 5.64% 0.76% -1.07% -0.51% 6.50% 7.23% 8.05% 14.19% 18.53% 21.03% 22.90% 22.06% 20.94% 18.56% 18.87% 18.21% % % %
Return on assets (ROA) 2.85% 0.98% 1.12% 0.14% -0.19% -0.09% 1.33% 1.41% 1.61% 2.68% 3.73% 4.37% 4.71% 4.36% 4.66% 4.41% 4.54% 4.46% % % %
Source: Based on data from Caterpillar Inc. Quarterly and Annual Reports
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 improved from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Caterpillar Inc.'s operating profit margin improved from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Caterpillar Inc.'s net profit margin deteriorated from Q3 2017 to Q4 2017 but then improved from Q4 2017 to Q1 2018 exceeding Q3 2017 level.
ROE A profitability ratio calculated as net income divided by shareholders' equity. Caterpillar Inc.'s ROE deteriorated from Q3 2017 to Q4 2017 but then improved from Q4 2017 to Q1 2018 exceeding Q3 2017 level.
ROA A profitability ratio calculated as net income divided by total assets. Caterpillar Inc.'s ROA deteriorated from Q3 2017 to Q4 2017 but then improved from Q4 2017 to Q1 2018 exceeding Q3 2017 level.

Gross Profit Margin

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

Microsoft Excel LibreOffice Calc
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 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data (USD $ in millions)
Gross margin 3,584  3,305  3,080  2,870  2,372  1,344  1,936  2,226  1,958  2,135  2,331  2,821  3,118  3,001  3,124  3,194  3,056  3,105  2,904  3,113  2,845 
Sales of Machinery, Energy & Transportation 12,150  12,194  10,713  10,639  9,130  8,885  8,463  9,645  8,780  10,318  10,285  11,583  11,961  13,500  12,758  13,391  12,493  13,646  12,678  13,886  12,484 
Ratio
Gross profit margin1 28.10% 27.24% 24.55% 22.96% 21.81% 20.86% 22.19% 22.16% 22.57% 23.57% 23.81% 24.22% 24.10% 23.73% 23.87% 23.48% 23.11% 22.71% % % %
Source: Based on data from Caterpillar Inc. Quarterly and Annual Reports

Q1 2018 Calculations

1 Gross profit margin = 100 × (Gross marginQ1 2018 + Gross marginQ4 2017 + Gross marginQ3 2017 + Gross marginQ2 2017) ÷ (Sales of Machinery, Energy & TransportationQ1 2018 + Sales of Machinery, Energy & TransportationQ4 2017 + Sales of Machinery, Energy & TransportationQ3 2017 + Sales of Machinery, Energy & TransportationQ2 2017)
= 100 × (3,584 + 3,305 + 3,080 + 2,870) ÷ (12,150 + 12,194 + 10,713 + 10,639) = 28.10%

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 improved from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

Operating Profit Margin

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

Microsoft Excel LibreOffice Calc
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 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data (USD $ in millions)
Operating profit 2,108  1,161  1,577  1,251  417  (1,262) 481  785  494  (114) 713  1,130  1,527  1,063  1,392  1,475  1,398  1,452  1,401  1,557  1,218 
Sales of Machinery, Energy & Transportation 12,150  12,194  10,713  10,639  9,130  8,885  8,463  9,645  8,780  10,318  10,285  11,583  11,961  13,500  12,758  13,391  12,493  13,646  12,678  13,886  12,484 
Ratio
Operating profit margin1 13.34% 10.32% 5.04% 2.39% 1.17% 1.39% 4.42% 4.81% 5.43% 7.38% 9.37% 10.26% 10.57% 10.22% 10.93% 10.97% 11.02% 10.68% % % %
Source: Based on data from Caterpillar Inc. Quarterly and Annual Reports

Q1 2018 Calculations

1 Operating profit margin = 100 × (Operating profitQ1 2018 + Operating profitQ4 2017 + Operating profitQ3 2017 + Operating profitQ2 2017) ÷ (Sales of Machinery, Energy & TransportationQ1 2018 + Sales of Machinery, Energy & TransportationQ4 2017 + Sales of Machinery, Energy & TransportationQ3 2017 + Sales of Machinery, Energy & TransportationQ2 2017)
= 100 × (2,108 + 1,161 + 1,577 + 1,251) ÷ (12,150 + 12,194 + 10,713 + 10,639) = 13.34%

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 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

Net Profit Margin

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

Microsoft Excel LibreOffice Calc
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 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data (USD $ in millions)
Profit (loss) attributable to common stockholders 1,665  (1,299) 1,059  802  192  (1,171) 283  550  271  (87) 368  710  1,111  757  1,017  999  922  1,003  946  960  880 
Sales of Machinery, Energy & Transportation 12,150  12,194  10,713  10,639  9,130  8,885  8,463  9,645  8,780  10,318  10,285  11,583  11,961  13,500  12,758  13,391  12,493  13,646  12,678  13,886  12,484 
Ratio
Net profit margin1 4.87% 1.77% 2.24% 0.29% -0.40% -0.19% 2.73% 2.82% 3.08% 4.76% 6.22% 7.22% 7.53% 7.09% 7.54% 7.41% 7.27% 7.19% % % %
Source: Based on data from Caterpillar Inc. Quarterly and Annual Reports

Q1 2018 Calculations

1 Net profit margin = 100 × (Profit (loss) attributable to common stockholdersQ1 2018 + Profit (loss) attributable to common stockholdersQ4 2017 + Profit (loss) attributable to common stockholdersQ3 2017 + Profit (loss) attributable to common stockholdersQ2 2017) ÷ (Sales of Machinery, Energy & TransportationQ1 2018 + Sales of Machinery, Energy & TransportationQ4 2017 + Sales of Machinery, Energy & TransportationQ3 2017 + Sales of Machinery, Energy & TransportationQ2 2017)
= 100 × (1,665 + -1,299 + 1,059 + 802) ÷ (12,150 + 12,194 + 10,713 + 10,639) = 4.87%

Ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Caterpillar Inc.'s net profit margin deteriorated from Q3 2017 to Q4 2017 but then improved from Q4 2017 to Q1 2018 exceeding Q3 2017 level.

Return on Equity (ROE)

Caterpillar Inc., ROE calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data (USD $ in millions)
Profit (loss) attributable to common stockholders 1,665  (1,299) 1,059  802  192  (1,171) 283  550  271  (87) 368  710  1,111  757  1,017  999  922  1,003  946  960  880 
Shareholders' equity attributable to common shareholders 15,206  13,697  15,627  14,009  13,588  13,137  15,645  15,232  15,676  14,809  15,896  17,092  16,962  16,746  18,823  20,856  20,305  20,811  18,110  17,621  18,274 
Ratio
ROE1 14.65% 5.50% 5.64% 0.76% -1.07% -0.51% 6.50% 7.23% 8.05% 14.19% 18.53% 21.03% 22.90% 22.06% 20.94% 18.56% 18.87% 18.21% % % %
Source: Based on data from Caterpillar Inc. Quarterly and Annual Reports

Q1 2018 Calculations

1 ROE = 100 × (Profit (loss) attributable to common stockholdersQ1 2018 + Profit (loss) attributable to common stockholdersQ4 2017 + Profit (loss) attributable to common stockholdersQ3 2017 + Profit (loss) attributable to common stockholdersQ2 2017) ÷ Shareholders' equity attributable to common shareholders
= 100 × (1,665 + -1,299 + 1,059 + 802) ÷ 15,206 = 14.65%

Ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders' equity. Caterpillar Inc.'s ROE deteriorated from Q3 2017 to Q4 2017 but then improved from Q4 2017 to Q1 2018 exceeding Q3 2017 level.

Return on Assets (ROA)

Caterpillar Inc., ROA calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data (USD $ in millions)
Profit (loss) attributable to common stockholders 1,665  (1,299) 1,059  802  192  (1,171) 283  550  271  (87) 368  710  1,111  757  1,017  999  922  1,003  946  960  880 
Total assets 78,014  76,962  78,560  78,510  77,549  74,704  76,402  78,300  78,307  78,497  78,969  82,242  82,490  84,681  84,488  87,827  84,397  84,896  87,272  87,375  88,743 
Ratio
ROA1 2.85% 0.98% 1.12% 0.14% -0.19% -0.09% 1.33% 1.41% 1.61% 2.68% 3.73% 4.37% 4.71% 4.36% 4.66% 4.41% 4.54% 4.46% % % %
Source: Based on data from Caterpillar Inc. Quarterly and Annual Reports

Q1 2018 Calculations

1 ROA = 100 × (Profit (loss) attributable to common stockholdersQ1 2018 + Profit (loss) attributable to common stockholdersQ4 2017 + Profit (loss) attributable to common stockholdersQ3 2017 + Profit (loss) attributable to common stockholdersQ2 2017) ÷ Total assets
= 100 × (1,665 + -1,299 + 1,059 + 802) ÷ 78,014 = 2.85%

Ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Caterpillar Inc.'s ROA deteriorated from Q3 2017 to Q4 2017 but then improved from Q4 2017 to Q1 2018 exceeding Q3 2017 level.