Stock Analysis on Net
Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Beginner level

Short-term Activity Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Turnover Ratios
Inventory turnover 2.66 2.82 2.97 3.25 3.08 3.16 3.03 3.21 3.04 3.07 3.00 3.10 2.91 3.05 3.11 3.29 3.05 3.21 3.22 3.48
Receivables turnover 5.86 6.11 6.12 5.92 6.28 5.87 5.85 5.89 6.32 6.05 5.79 5.74 5.88 5.56 5.53 5.98 6.42 6.17 5.98 6.59
Payables turnover 5.86 6.31 6.05 6.15 6.11 5.40 5.20 5.25 5.29 5.05 4.74 4.79 4.86 4.95 5.33 6.14 6.14 5.95 6.22 6.72
Working capital turnover 3.01 3.45 4.33 4.04 4.35 4.38 4.46 4.99 4.06 4.67 4.59 4.58 3.49 4.19 4.57 6.13 5.55 6.08 5.44 5.44
Average No. Days
Average inventory processing period 137 129 123 112 119 115 120 114 120 119 122 118 125 120 117 111 119 114 113 105
Add: Average receivable collection period 62 60 60 62 58 62 62 62 58 60 63 64 62 66 66 61 57 59 61 55
Operating cycle 199 189 183 174 177 177 182 176 178 179 185 182 187 186 183 172 176 173 174 160
Less: Average payables payment period 62 58 60 59 60 68 70 70 69 72 77 76 75 74 69 59 59 61 59 54
Cash conversion cycle 137 131 123 115 117 109 112 106 109 107 108 106 112 112 114 113 117 112 115 106

Based on: 10-Q (filing date: 2020-11-04), 10-Q (filing date: 2020-08-05), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-19), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-06), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-07), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-01), 10-Q (filing date: 2017-08-02), 10-Q (filing date: 2017-05-03), 10-K (filing date: 2017-02-15), 10-Q (filing date: 2016-11-02), 10-Q (filing date: 2016-08-03), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Caterpillar Inc.’s inventory turnover ratio deteriorated from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
Receivables turnover An activity ratio equal to revenue divided by receivables. Caterpillar Inc.’s receivables turnover ratio deteriorated from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Caterpillar Inc.’s payables turnover ratio increased from Q1 2020 to Q2 2020 but then decreased significantly from Q2 2020 to Q3 2020.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Caterpillar Inc.’s working capital turnover ratio deteriorated from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

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. Caterpillar Inc.’s number of days of inventory outstanding deteriorated from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Caterpillar Inc.’s operating cycle deteriorated from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
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.’s number of days of payables outstanding decreased from Q1 2020 to Q2 2020 but then increased from Q2 2020 to Q3 2020 exceeding Q1 2020 level.
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. Caterpillar Inc.’s cash conversion cycle deteriorated from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Inventory Turnover

Caterpillar Inc., inventory turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data (US$ in millions)
Cost of goods sold 6,919  7,113  7,266  9,117  8,569  9,941  9,003  9,987  9,022  9,422  8,566  8,889  7,633  7,769  6,758  7,541  6,527  7,419  6,822  8,183  7,954  8,762  8,843 
Inventories 11,453  11,371  11,748  11,266  12,180  12,007  12,340  11,529  11,814  11,255  10,947  10,018  10,212  9,388  9,082  8,614  9,478  9,458  9,849  9,700  11,150  11,681  12,099 
Short-term Activity Ratio
Inventory turnover1 2.66 2.82 2.97 3.25 3.08 3.16 3.03 3.21 3.04 3.07 3.00 3.10 2.91 3.05 3.11 3.29 3.05 3.21 3.22 3.48
Benchmarks
Inventory Turnover, Competitors2
Illinois Tool Works Inc. 6.44 6.42 6.75 7.03 6.83 6.65 6.30 6.53 6.45 6.54 6.36 6.81 6.69 6.78 6.91 7.34 6.71 6.77 6.89 7.26

Based on: 10-Q (filing date: 2020-11-04), 10-Q (filing date: 2020-08-05), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-19), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-06), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-07), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-01), 10-Q (filing date: 2017-08-02), 10-Q (filing date: 2017-05-03), 10-K (filing date: 2017-02-15), 10-Q (filing date: 2016-11-02), 10-Q (filing date: 2016-08-03), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01).

1 Q3 2020 Calculation
Inventory turnover = (Cost of goods soldQ3 2020 + Cost of goods soldQ2 2020 + Cost of goods soldQ1 2020 + Cost of goods soldQ4 2019) ÷ Inventories
= (6,919 + 7,113 + 7,266 + 9,117) ÷ 11,453 = 2.66

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.’s inventory turnover ratio deteriorated from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Receivables Turnover

Caterpillar Inc., receivables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data (US$ in millions)
Sales of Machinery, Energy & Transportation 9,228  9,310  9,914  12,386  11,974  13,671  12,724  13,630  12,763  13,279  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 
Receivables, trade and other 6,969  7,134  7,834  8,568  8,275  8,996  8,961  8,802  7,974  7,991  7,894  7,436  6,691  6,675  6,533  5,981  5,797  6,326  6,856  6,695  6,783  7,212  7,586 
Short-term Activity Ratio
Receivables turnover1 5.86 6.11 6.12 5.92 6.28 5.87 5.85 5.89 6.32 6.05 5.79 5.74 5.88 5.56 5.53 5.98 6.42 6.17 5.98 6.59
Benchmarks
Receivables Turnover, Competitors2
Illinois Tool Works Inc. 5.04 5.91 5.69 5.73 5.69 5.46 5.37 5.63 5.34 5.15 5.08 5.45 5.27 5.31 5.44 5.77 5.40 5.53 5.57 6.08

Based on: 10-Q (filing date: 2020-11-04), 10-Q (filing date: 2020-08-05), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-19), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-06), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-07), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-01), 10-Q (filing date: 2017-08-02), 10-Q (filing date: 2017-05-03), 10-K (filing date: 2017-02-15), 10-Q (filing date: 2016-11-02), 10-Q (filing date: 2016-08-03), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01).

1 Q3 2020 Calculation
Receivables turnover = (Sales of Machinery, Energy & TransportationQ3 2020 + Sales of Machinery, Energy & TransportationQ2 2020 + Sales of Machinery, Energy & TransportationQ1 2020 + Sales of Machinery, Energy & TransportationQ4 2019) ÷ Receivables, trade and other
= (9,228 + 9,310 + 9,914 + 12,386) ÷ 6,969 = 5.86

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.’s receivables turnover ratio deteriorated from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Payables Turnover

Caterpillar Inc., payables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data (US$ in millions)
Cost of goods sold 6,919  7,113  7,266  9,117  8,569  9,941  9,003  9,987  9,022  9,422  8,566  8,889  7,633  7,769  6,758  7,541  6,527  7,419  6,822  8,183  7,954  8,762  8,843 
Accounts payable 5,193  5,083  5,769  5,957  6,141  7,022  7,198  7,051  6,788  6,831  6,938  6,487  6,113  5,778  5,302  4,614  4,713  5,104  5,101  5,023  5,206  5,862  6,328 
Short-term Activity Ratio
Payables turnover1 5.86 6.31 6.05 6.15 6.11 5.40 5.20 5.25 5.29 5.05 4.74 4.79 4.86 4.95 5.33 6.14 6.14 5.95 6.22 6.72
Benchmarks
Payables Turnover, Competitors2
Illinois Tool Works Inc. 14.20 18.64 16.39 17.35 16.76 16.31 14.93 16.42 14.99 13.85 12.96 14.08 14.00 13.96 13.94 15.45 13.46 14.95 14.88 17.57

Based on: 10-Q (filing date: 2020-11-04), 10-Q (filing date: 2020-08-05), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-19), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-06), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-07), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-01), 10-Q (filing date: 2017-08-02), 10-Q (filing date: 2017-05-03), 10-K (filing date: 2017-02-15), 10-Q (filing date: 2016-11-02), 10-Q (filing date: 2016-08-03), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01).

1 Q3 2020 Calculation
Payables turnover = (Cost of goods soldQ3 2020 + Cost of goods soldQ2 2020 + Cost of goods soldQ1 2020 + Cost of goods soldQ4 2019) ÷ Accounts payable
= (6,919 + 7,113 + 7,266 + 9,117) ÷ 5,193 = 5.86

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.’s payables turnover ratio increased from Q1 2020 to Q2 2020 but then decreased significantly from Q2 2020 to Q3 2020.

Working Capital Turnover

Caterpillar Inc., working capital turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data (US$ in millions)
Current assets 38,534  37,862  37,586  39,193  39,160  39,789  39,126  38,603  38,454  38,641  37,357  36,244  37,185  36,991  35,548  31,967  31,999  33,606  33,748  34,418  35,280  38,227  38,491 
Less: Current liabilities 24,978  25,231  26,516  26,621  27,201  27,735  27,388  28,218  26,033  28,300  27,402  26,931  25,903  28,133  27,635  26,132  25,290  27,183  26,215  26,303  25,833  25,606  26,566 
Working capital 13,556  12,631  11,070  12,572  11,959  12,054  11,738  10,385  12,421  10,341  9,955  9,313  11,282  8,858  7,913  5,835  6,709  6,423  7,533  8,115  9,447  12,621  11,925 
 
Sales of Machinery, Energy & Transportation 9,228  9,310  9,914  12,386  11,974  13,671  12,724  13,630  12,763  13,279  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 
Short-term Activity Ratio
Working capital turnover1 3.01 3.45 4.33 4.04 4.35 4.38 4.46 4.99 4.06 4.67 4.59 4.58 3.49 4.19 4.57 6.13 5.55 6.08 5.44 5.44
Benchmarks
Working Capital Turnover, Competitors2
Illinois Tool Works Inc. 3.60 3.57 3.97 3.44 3.54 3.50 6.89 6.60 6.51 5.76 4.17 3.39 3.48 3.73 3.88 4.04 4.99 3.99 3.78 3.08

Based on: 10-Q (filing date: 2020-11-04), 10-Q (filing date: 2020-08-05), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-19), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-06), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-07), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-01), 10-Q (filing date: 2017-08-02), 10-Q (filing date: 2017-05-03), 10-K (filing date: 2017-02-15), 10-Q (filing date: 2016-11-02), 10-Q (filing date: 2016-08-03), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01).

1 Q3 2020 Calculation
Working capital turnover = (Sales of Machinery, Energy & TransportationQ3 2020 + Sales of Machinery, Energy & TransportationQ2 2020 + Sales of Machinery, Energy & TransportationQ1 2020 + Sales of Machinery, Energy & TransportationQ4 2019) ÷ Working capital
= (9,228 + 9,310 + 9,914 + 12,386) ÷ 13,556 = 3.01

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.’s working capital turnover ratio deteriorated from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Average Inventory Processing Period

Caterpillar Inc., average inventory processing period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data
Inventory turnover 2.66 2.82 2.97 3.25 3.08 3.16 3.03 3.21 3.04 3.07 3.00 3.10 2.91 3.05 3.11 3.29 3.05 3.21 3.22 3.48
Short-term Activity Ratio (no. days)
Average inventory processing period1 137 129 123 112 119 115 120 114 120 119 122 118 125 120 117 111 119 114 113 105
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Illinois Tool Works Inc. 57 57 54 52 53 55 58 56 57 56 57 54 55 54 53 50 54 54 53 50

Based on: 10-Q (filing date: 2020-11-04), 10-Q (filing date: 2020-08-05), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-19), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-06), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-07), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-01), 10-Q (filing date: 2017-08-02), 10-Q (filing date: 2017-05-03), 10-K (filing date: 2017-02-15), 10-Q (filing date: 2016-11-02), 10-Q (filing date: 2016-08-03), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01).

1 Q3 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.66 = 137

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. Caterpillar Inc.’s number of days of inventory outstanding deteriorated from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Average Receivable Collection Period

Caterpillar Inc., average receivable collection period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data
Receivables turnover 5.86 6.11 6.12 5.92 6.28 5.87 5.85 5.89 6.32 6.05 5.79 5.74 5.88 5.56 5.53 5.98 6.42 6.17 5.98 6.59
Short-term Activity Ratio (no. days)
Average receivable collection period1 62 60 60 62 58 62 62 62 58 60 63 64 62 66 66 61 57 59 61 55
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Illinois Tool Works Inc. 72 62 64 64 64 67 68 65 68 71 72 67 69 69 67 63 68 66 66 60

Based on: 10-Q (filing date: 2020-11-04), 10-Q (filing date: 2020-08-05), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-19), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-06), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-07), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-01), 10-Q (filing date: 2017-08-02), 10-Q (filing date: 2017-05-03), 10-K (filing date: 2017-02-15), 10-Q (filing date: 2016-11-02), 10-Q (filing date: 2016-08-03), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01).

1 Q3 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.86 = 62

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.

Operating Cycle

Caterpillar Inc., operating cycle calculation (quarterly data)

No. days

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data
Average inventory processing period 137 129 123 112 119 115 120 114 120 119 122 118 125 120 117 111 119 114 113 105
Average receivable collection period 62 60 60 62 58 62 62 62 58 60 63 64 62 66 66 61 57 59 61 55
Short-term Activity Ratio
Operating cycle1 199 189 183 174 177 177 182 176 178 179 185 182 187 186 183 172 176 173 174 160
Benchmarks
Operating Cycle, Competitors2
Illinois Tool Works Inc. 129 119 118 116 117 122 126 121 125 127 129 121 124 123 120 113 122 120 119 110

Based on: 10-Q (filing date: 2020-11-04), 10-Q (filing date: 2020-08-05), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-19), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-06), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-07), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-01), 10-Q (filing date: 2017-08-02), 10-Q (filing date: 2017-05-03), 10-K (filing date: 2017-02-15), 10-Q (filing date: 2016-11-02), 10-Q (filing date: 2016-08-03), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01).

1 Q3 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 137 + 62 = 199

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.’s operating cycle deteriorated from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Average Payables Payment Period

Caterpillar Inc., average payables payment period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data
Payables turnover 5.86 6.31 6.05 6.15 6.11 5.40 5.20 5.25 5.29 5.05 4.74 4.79 4.86 4.95 5.33 6.14 6.14 5.95 6.22 6.72
Short-term Activity Ratio (no. days)
Average payables payment period1 62 58 60 59 60 68 70 70 69 72 77 76 75 74 69 59 59 61 59 54
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Illinois Tool Works Inc. 26 20 22 21 22 22 24 22 24 26 28 26 26 26 26 24 27 24 25 21

Based on: 10-Q (filing date: 2020-11-04), 10-Q (filing date: 2020-08-05), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-19), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-06), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-07), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-01), 10-Q (filing date: 2017-08-02), 10-Q (filing date: 2017-05-03), 10-K (filing date: 2017-02-15), 10-Q (filing date: 2016-11-02), 10-Q (filing date: 2016-08-03), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01).

1 Q3 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.86 = 62

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.’s number of days of payables outstanding decreased from Q1 2020 to Q2 2020 but then increased from Q2 2020 to Q3 2020 exceeding Q1 2020 level.

Cash Conversion Cycle

Caterpillar Inc., cash conversion cycle calculation (quarterly data)

No. days

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data
Average inventory processing period 137 129 123 112 119 115 120 114 120 119 122 118 125 120 117 111 119 114 113 105
Average receivable collection period 62 60 60 62 58 62 62 62 58 60 63 64 62 66 66 61 57 59 61 55
Average payables payment period 62 58 60 59 60 68 70 70 69 72 77 76 75 74 69 59 59 61 59 54
Short-term Activity Ratio
Cash conversion cycle1 137 131 123 115 117 109 112 106 109 107 108 106 112 112 114 113 117 112 115 106
Benchmarks
Cash Conversion Cycle, Competitors2
Illinois Tool Works Inc. 103 99 96 95 95 100 102 99 101 101 101 95 98 97 94 89 95 96 94 89

Based on: 10-Q (filing date: 2020-11-04), 10-Q (filing date: 2020-08-05), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-19), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-06), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-07), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-01), 10-Q (filing date: 2017-08-02), 10-Q (filing date: 2017-05-03), 10-K (filing date: 2017-02-15), 10-Q (filing date: 2016-11-02), 10-Q (filing date: 2016-08-03), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01).

1 Q3 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 137 + 6262 = 137

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. Caterpillar Inc.’s cash conversion cycle deteriorated from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.