Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Caterpillar Inc., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Turnover Ratios
Inventory turnover 2.58 2.54 2.53 2.55 3.25
Receivables turnover 6.86 6.39 5.68 5.33 5.92
Payables turnover 5.41 4.76 4.36 4.75 6.15
Working capital turnover 5.23 4.62 3.54 2.84 4.04
Average No. Days
Average inventory processing period 141 144 144 143 112
Add: Average receivable collection period 53 57 64 68 62
Operating cycle 194 201 208 211 174
Less: Average payables payment period 67 77 84 77 59
Cash conversion cycle 127 124 124 134 115

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Caterpillar Inc. inventory turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Receivables turnover An activity ratio equal to revenue divided by receivables. Caterpillar Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Caterpillar Inc. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Caterpillar Inc. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Caterpillar Inc. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Caterpillar Inc. operating cycle improved from 2021 to 2022 and from 2022 to 2023.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Caterpillar Inc. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.

Inventory Turnover

Caterpillar Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cost of goods sold 42,767 41,350 35,513 29,082 36,630
Inventories 16,565 16,270 14,038 11,402 11,266
Short-term Activity Ratio
Inventory turnover1 2.58 2.54 2.53 2.55 3.25
Benchmarks
Inventory Turnover, Competitors2
Boeing Co. 0.88 0.81 0.75 0.78 0.94
Eaton Corp. plc 3.95 4.04 4.48 5.88 5.11
General Electric Co. 3.05 3.19 3.40 3.80 4.74
Honeywell International Inc. 3.72 4.04 4.29 4.94 5.51
Lockheed Martin Corp. 18.87 18.68 19.45 16.01 14.22
RTX Corp. 4.83 5.03 5.65 5.11 5.21
Inventory Turnover, Sector
Capital Goods 2.30 2.28 2.28 2.28 2.61
Inventory Turnover, Industry
Industrials 3.89 3.99 3.87 3.61 3.94

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Inventory turnover = Cost of goods sold ÷ Inventories
= 42,767 ÷ 16,565 = 2.58

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Caterpillar Inc. inventory turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Receivables Turnover

Caterpillar Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Sales of Machinery, Energy & Transportation 63,869 56,574 48,188 39,022 50,755
Receivables, trade and other 9,310 8,856 8,477 7,317 8,568
Short-term Activity Ratio
Receivables turnover1 6.86 6.39 5.68 5.33 5.92
Benchmarks
Receivables Turnover, Competitors2
Boeing Co. 29.37 26.46 23.58 29.75 23.44
Eaton Corp. plc 5.18 5.09 5.95 6.15 6.22
General Electric Co. 4.17 4.09 4.55 4.37 5.22
Honeywell International Inc. 4.87 4.77 5.04 4.78 4.90
Lockheed Martin Corp. 31.69 26.34 34.15 33.06 25.59
RTX Corp. 6.36 7.36 6.66 6.11 5.70
Receivables Turnover, Sector
Capital Goods 7.68 7.36 7.57 7.30 7.40
Receivables Turnover, Industry
Industrials 8.14 7.80 7.60 7.49 7.67

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Receivables turnover = Sales of Machinery, Energy & Transportation ÷ Receivables, trade and other
= 63,869 ÷ 9,310 = 6.86

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Caterpillar Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Payables Turnover

Caterpillar Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cost of goods sold 42,767 41,350 35,513 29,082 36,630
Accounts payable 7,906 8,689 8,154 6,128 5,957
Short-term Activity Ratio
Payables turnover1 5.41 4.76 4.36 4.75 6.15
Benchmarks
Payables Turnover, Competitors2
Boeing Co. 5.86 6.18 6.40 4.94 4.63
Eaton Corp. plc 4.39 4.51 4.75 6.24 6.78
General Electric Co. 3.27 2.98 3.32 3.67 4.20
Honeywell International Inc. 3.36 3.53 3.40 3.86 4.25
Lockheed Martin Corp. 25.56 27.25 74.34 64.48 40.16
RTX Corp. 5.31 5.40 5.93 5.56 5.28
Payables Turnover, Sector
Capital Goods 5.42 5.21 5.60 5.54 5.63
Payables Turnover, Industry
Industrials 7.74 7.58 7.74 7.44 7.40

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Payables turnover = Cost of goods sold ÷ Accounts payable
= 42,767 ÷ 7,906 = 5.41

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Caterpillar Inc. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023.

Working Capital Turnover

Caterpillar Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Current assets 46,949 43,785 43,455 39,464 39,193
Less: Current liabilities 34,728 31,531 29,847 25,717 26,621
Working capital 12,221 12,254 13,608 13,747 12,572
 
Sales of Machinery, Energy & Transportation 63,869 56,574 48,188 39,022 50,755
Short-term Activity Ratio
Working capital turnover1 5.23 4.62 3.54 2.84 4.04
Benchmarks
Working Capital Turnover, Competitors2
Boeing Co. 5.78 3.42 2.34 1.69 15.57
Eaton Corp. plc 5.91 8.70 65.65 5.42 5.95
General Electric Co. 7.24 7.93 4.94 2.26 7.03
Honeywell International Inc. 7.39 7.03 5.86 3.64 5.92
Lockheed Martin Corp. 18.85 12.93 11.52 12.01 19.15
RTX Corp. 41.62 20.15 9.75 7.52 26.47
Working Capital Turnover, Sector
Capital Goods 8.26 6.79 5.01 3.24 8.95
Working Capital Turnover, Industry
Industrials 11.44 9.67 6.90 4.47 10.00

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Working capital turnover = Sales of Machinery, Energy & Transportation ÷ Working capital
= 63,869 ÷ 12,221 = 5.23

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Caterpillar Inc. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Average Inventory Processing Period

Caterpillar Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Inventory turnover 2.58 2.54 2.53 2.55 3.25
Short-term Activity Ratio (no. days)
Average inventory processing period1 141 144 144 143 112
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Boeing Co. 415 452 486 467 388
Eaton Corp. plc 92 90 82 62 71
General Electric Co. 120 114 107 96 77
Honeywell International Inc. 98 90 85 74 66
Lockheed Martin Corp. 19 20 19 23 26
RTX Corp. 76 73 65 71 70
Average Inventory Processing Period, Sector
Capital Goods 159 160 160 160 140
Average Inventory Processing Period, Industry
Industrials 94 91 94 101 93

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.58 = 141

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Average Receivable Collection Period

Caterpillar Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Receivables turnover 6.86 6.39 5.68 5.33 5.92
Short-term Activity Ratio (no. days)
Average receivable collection period1 53 57 64 68 62
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Boeing Co. 12 14 15 12 16
Eaton Corp. plc 70 72 61 59 59
General Electric Co. 87 89 80 83 70
Honeywell International Inc. 75 77 72 76 75
Lockheed Martin Corp. 12 14 11 11 14
RTX Corp. 57 50 55 60 64
Average Receivable Collection Period, Sector
Capital Goods 48 50 48 50 49
Average Receivable Collection Period, Industry
Industrials 45 47 48 49 48

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.86 = 53

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Caterpillar Inc. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023.

Operating Cycle

Caterpillar Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 141 144 144 143 112
Average receivable collection period 53 57 64 68 62
Short-term Activity Ratio
Operating cycle1 194 201 208 211 174
Benchmarks
Operating Cycle, Competitors2
Boeing Co. 427 466 501 479 404
Eaton Corp. plc 162 162 143 121 130
General Electric Co. 207 203 187 179 147
Honeywell International Inc. 173 167 157 150 141
Lockheed Martin Corp. 31 34 30 34 40
RTX Corp. 133 123 120 131 134
Operating Cycle, Sector
Capital Goods 207 210 208 210 189
Operating Cycle, Industry
Industrials 139 138 142 150 141

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 141 + 53 = 194

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Caterpillar Inc. operating cycle improved from 2021 to 2022 and from 2022 to 2023.

Average Payables Payment Period

Caterpillar Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Payables turnover 5.41 4.76 4.36 4.75 6.15
Short-term Activity Ratio (no. days)
Average payables payment period1 67 77 84 77 59
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Boeing Co. 62 59 57 74 79
Eaton Corp. plc 83 81 77 58 54
General Electric Co. 112 123 110 100 87
Honeywell International Inc. 109 103 107 95 86
Lockheed Martin Corp. 14 13 5 6 9
RTX Corp. 69 68 62 66 69
Average Payables Payment Period, Sector
Capital Goods 67 70 65 66 65
Average Payables Payment Period, Industry
Industrials 47 48 47 49 49

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.41 = 67

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Caterpillar Inc. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023.

Cash Conversion Cycle

Caterpillar Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 141 144 144 143 112
Average receivable collection period 53 57 64 68 62
Average payables payment period 67 77 84 77 59
Short-term Activity Ratio
Cash conversion cycle1 127 124 124 134 115
Benchmarks
Cash Conversion Cycle, Competitors2
Boeing Co. 365 407 444 405 325
Eaton Corp. plc 79 81 66 63 76
General Electric Co. 95 80 77 79 60
Honeywell International Inc. 64 64 50 55 55
Lockheed Martin Corp. 17 21 25 28 31
RTX Corp. 64 55 58 65 65
Cash Conversion Cycle, Sector
Capital Goods 140 140 143 144 124
Cash Conversion Cycle, Industry
Industrials 92 90 95 101 92

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 141 + 5367 = 127

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.