Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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Profitability Ratios (Summary)
Caterpillar Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
Analysis of profitability metrics reveals a cyclical trend characterized by a period of aggressive expansion between early 2022 and early 2024, followed by a gradual contraction through the first quarter of 2026. Across all measured ratios, peaks were generally achieved in late 2023 or early 2024, after which metrics began to normalize toward levels closer to the 2022 baseline.
- Gross Profit Margin
- A consistent upward trajectory was observed from March 2022 (25.71%), reaching a peak of 34.49% in December 2024. Subsequently, a steady downward trend emerged, with the margin retreating to 29.79% by March 2026. This suggests a phase of enhanced pricing power or cost efficiencies that began to diminish in the latter half of the analyzed period.
- Operating Profit Margin
- Operational efficiency improved significantly from 13.87% in March 2022 to a peak of 21.58% in March 2024. A gradual decline followed this peak, with the margin closing at 17.38% in March 2026. The correlation between the peak of the operating margin and other profitability metrics indicates a period of maximum operational leverage during early 2024.
- Net Profit Margin
- The net margin exhibited growth from 13.02% in March 2022, reaching a high of 17.65% in March 2024. While a downward trend was evident throughout 2025, the margin stabilized at 14.06% by March 2026, remaining marginally above the initial 2022 levels.
- Return on Equity (ROE)
- A substantial expansion in shareholder returns was recorded, with ROE rising from 38.07% in March 2022 to a maximum of 64.26% in June 2024. Despite a correction that saw the ratio fall to 41.67% in December 2025, a recovery to 50.53% was observed by March 2026, suggesting a resilient capacity for generating returns on equity.
- Return on Assets (ROA)
- Asset utilization efficiency increased from 7.90% in March 2022 to a peak of 13.43% in March 2024. A subsequent decline mirrored the operating margin trend, reaching a low of 9.01% in December 2025 before recovering to 9.87% in March 2026.
Return on Sales
Return on Investment
Gross Profit Margin
Caterpillar Inc., gross profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Gross margin | |||||||||||||||||||||||
| Sales of Machinery, Power & Energy | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q1 2026 Calculation
Gross profit margin = 100
× (Gross marginQ1 2026
+ Gross marginQ4 2025
+ Gross marginQ3 2025
+ Gross marginQ2 2025)
÷ (Sales of Machinery, Power & EnergyQ1 2026
+ Sales of Machinery, Power & EnergyQ4 2025
+ Sales of Machinery, Power & EnergyQ3 2025
+ Sales of Machinery, Power & EnergyQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data indicates a cyclical trend in profitability, characterized by a sustained period of margin expansion followed by a gradual contraction. The gross profit margin experienced a consistent upward trajectory over several quarters, reaching a peak before entering a decelerating phase.
- Gross Profit Margin Percentage Trends
- A significant expansion in the gross profit margin is observed from March 31, 2022, to December 31, 2024. The margin increased from 25.71% to a peak of 34.49%, representing a growth of approximately 878 basis points. This period of improvement was most pronounced between March 2023 and December 2023, where the margin rose from 28.74% to 33.04%. Following the peak in late 2024, a steady decline is noted, with the margin receding to 29.79% by March 31, 2026.
- Revenue and Absolute Gross Margin Correlation
- Sales of Machinery, Power & Energy exhibited a general upward trend, growing from 12,886 million USD in March 2022 to a peak of 18,202 million USD in December 2025. However, the absolute gross margin did not mirror this growth linearly. The absolute gross margin peaked earlier, at 5,690 million USD in June 2024, despite sales continuing to rise thereafter. This divergence explains the subsequent compression in the gross profit margin percentage observed throughout 2025 and early 2026.
- Profitability Efficiency Analysis
- The most efficient period of operation occurred between June 2024 and December 2024, where the gross profit margin remained consistently above 34%. During this window, the company achieved its highest conversion of sales into gross profit. The subsequent decline in the margin percentage, coinciding with the period of highest sales volume (December 2025), suggests an increase in the cost of goods sold or a reduction in pricing power relative to volume growth.
Operating Profit Margin
Caterpillar Inc., operating profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Operating profit | |||||||||||||||||||||||
| Sales of Machinery, Power & Energy | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q1 2026 Calculation
Operating profit margin = 100
× (Operating profitQ1 2026
+ Operating profitQ4 2025
+ Operating profitQ3 2025
+ Operating profitQ2 2025)
÷ (Sales of Machinery, Power & EnergyQ1 2026
+ Sales of Machinery, Power & EnergyQ4 2025
+ Sales of Machinery, Power & EnergyQ3 2025
+ Sales of Machinery, Power & EnergyQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The operating profit margin exhibited a distinct cyclical pattern over the analyzed period, characterized by a sustained expansion phase followed by a gradual compression. Profitability metrics transitioned from a stable baseline in 2022 to a period of significant growth, eventually entering a phase of moderate decline through early 2026.
- Operating Profit Margin Trend
- From March 31, 2022, to March 31, 2024, the operating profit margin increased from 13.87% to a peak of 21.58%. This growth was most aggressive between March 2023 and December 2023, where the margin climbed from 14.94% to 20.30%, indicating a substantial increase in operational efficiency or pricing power.
- Following the peak in the first quarter of 2024, a consistent downward trajectory is observed. The margin declined steadily from 21.58% to 17.38% by March 31, 2026, representing a contraction of approximately 420 basis points from the zenith.
- Operating Profit and Revenue Analysis
- Operating profit experienced significant growth in the early stages of the period, rising from 1,855 million US dollars in March 2022 to a high of 3,652 million US dollars in June 2023. In the later periods, operating profit demonstrated increased volatility, fluctuating between a low of 2,579 million US dollars in December 2023 and a recent high of 3,085 million US dollars in March 2026.
- Sales of Machinery, Power & Energy showed a general upward trend, peaking at 18,202 million US dollars in September 2025. The period between June 2024 and September 2025 is particularly notable as sales continued to rise while the operating profit margin began to compress, suggesting that cost increases began to outpace revenue growth.
- Comparative Profitability Phases
- The initial phase (2022) was characterized by stability, with margins fluctuating narrowly between 13.81% and 14.56%. The second phase (2023 to early 2024) was an expansionary period where margins broke above the 20% threshold.
- The final phase (mid-2024 to early 2026) shows a transition toward a new equilibrium, as the margin stabilized in the 17% to 19% range, remaining higher than the 2022 baseline despite the downward trend from the 2024 peak.
Net Profit Margin
Caterpillar Inc., net profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Profit attributable to common stockholders | |||||||||||||||||||||||
| Sales of Machinery, Power & Energy | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q1 2026 Calculation
Net profit margin = 100
× (Profit attributable to common stockholdersQ1 2026
+ Profit attributable to common stockholdersQ4 2025
+ Profit attributable to common stockholdersQ3 2025
+ Profit attributable to common stockholdersQ2 2025)
÷ (Sales of Machinery, Power & EnergyQ1 2026
+ Sales of Machinery, Power & EnergyQ4 2025
+ Sales of Machinery, Power & EnergyQ3 2025
+ Sales of Machinery, Power & EnergyQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The net profit margin exhibits a cyclic trajectory over the analyzed period, characterized by a steady ascent toward a peak in early 2024, followed by a gradual compression through 2025 and a slight stabilization in early 2026.
- Margin Expansion Phase (2022–2023)
- From March 2022 through December 2023, a general upward trend in profitability is observed. Although a temporary dip to 11.85% occurred in December 2022, the margin recovered in early 2023 and climbed consistently, reaching 16.18% by the end of the year. This period reflects a strong improvement in the conversion of sales into net profit.
- Peak Profitability Period (2024)
- The maximum profitability threshold was reached in 2024, with the net profit margin peaking at 17.65% in March. Throughout the 2024 calendar year, the margin remained consistently above 17%, representing the most efficient period of operational performance relative to revenue within the observed timeframe.
- Margin Compression and Stabilization (2025–2026)
- A sustained downward trend emerged starting in March 2025, with the margin declining from 16.63% to a low of 13.89% in December 2025. This compression is particularly notable because it coincided with a peak in sales of 18,202 million USD in December 2025, indicating that expenses increased at a rate exceeding revenue growth during this phase. A slight reversal of this decline is observed in March 2026, where the margin adjusted upward to 14.06%.
Return on Equity (ROE)
Caterpillar Inc., ROE calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Profit attributable to common stockholders | |||||||||||||||||||||||
| Shareholders’ equity attributable to common shareholders | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q1 2026 Calculation
ROE = 100
× (Profit attributable to common stockholdersQ1 2026
+ Profit attributable to common stockholdersQ4 2025
+ Profit attributable to common stockholdersQ3 2025
+ Profit attributable to common stockholdersQ2 2025)
÷ Shareholders’ equity attributable to common shareholders
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
An analysis of the financial performance indicates a period of significant expansion in shareholder returns, characterized by a sharp ascent in Return on Equity (ROE) between early 2022 and mid-2024, followed by a phase of normalization. The data reveals a strong correlation between increased net profitability and the acceleration of ROE during the first half of the observed period.
- Profitability Trends
- Profit attributable to common stockholders demonstrated a notable upward trajectory, increasing from 1,537 million USD in March 2022 to a peak of 2,922 million USD in June 2023. Although quarterly earnings exhibited volatility, they remained consistently higher throughout 2024 and 2025 compared to the 2022 baseline, typically maintaining a range between 2,000 million USD and 2,800 million USD.
- Equity Base Dynamics
- Shareholders' equity experienced several fluctuations, ranging from a low of 15,591 million USD in September 2022 to a peak of 21,318 million USD in December 2025. The volatility in equity, combined with fluctuating net income, contributed to the variability of the ROE percentage across different quarters.
- Return on Equity (ROE) Analysis
- ROE exhibited a substantial growth phase, rising from 38.07% in March 2022 to a peak of 64.26% in June 2024. This peak represents the height of capital efficiency during the analyzed period. Following this apex, a gradual downward trend occurred, with ROE declining to 41.67% by December 2025. A recovery is noted in the final quarter of the data set, with ROE increasing to 50.53% by March 2026.
- Correlation and Efficiency
- The surge in ROE during 2023 and early 2024 was primarily driven by the rapid increase in profit attributable to common stockholders, which outpaced the growth of the equity base. The subsequent decline in ROE through 2025 occurred as the equity base continued to expand toward its peak of 21,318 million USD while profits experienced a slight moderate contraction, thereby diluting the return per unit of equity.
Return on Assets (ROA)
Caterpillar Inc., ROA calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Profit attributable to common stockholders | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q1 2026 Calculation
ROA = 100
× (Profit attributable to common stockholdersQ1 2026
+ Profit attributable to common stockholdersQ4 2025
+ Profit attributable to common stockholdersQ3 2025
+ Profit attributable to common stockholdersQ2 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analyzed period reveals a cyclical trajectory in asset efficiency, characterized by a significant expansion in Return on Assets (ROA) through 2023 and early 2024, followed by a contraction throughout 2025. While absolute profitability remained generally higher in the latter half of the period compared to the beginning, a substantial increase in the asset base during 2025 exerted downward pressure on the efficiency ratio.
- Profitability Trends
- Net profits exhibited substantial growth beginning in early 2023, reaching a peak of 2,922 million US$ in June 2023. While profitability fluctuated throughout 2024, it remained elevated compared to 2022 levels. A dip occurred in the first quarter of 2025, followed by a consistent quarter-over-quarter recovery through December 2025 and into the first quarter of 2026, where profit reached 2,549 million US$.
- Asset Base Evolution
- Total assets remained relatively stable, oscillating between 80,907 million US$ and 87,764 million US$ from March 2022 through December 2024. A notable shift occurred in 2025, marked by a rapid expansion of the balance sheet. Assets climbed from 84,974 million US$ in March 2025 to a peak of 98,585 million US$ by December 2025, before retreating to 95,550 million US$ in the first quarter of 2026.
- Return on Assets (ROA) Analysis
- The ROA followed a distinct bell-shaped curve over the period. Starting at 7.90% in March 2022, the ratio climbed steadily to a peak of 13.43% in March 2024, reflecting a period where profit growth significantly outpaced asset accumulation. However, a downward trend emerged throughout 2025, with the ROA falling to 9.01% by December 2025. This decline is primarily attributed to the aggressive growth in total assets during 2025, which diluted the return relative to the earnings generated. A slight recovery to 9.87% was observed in March 2026, coinciding with a reduction in total assets and an increase in profit.