Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Caterpillar Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 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).
An analysis of short-term operating activity indicates a period of relative stability followed by a moderate decline in operational efficiency toward the end of the observed timeframe. The overall trend is characterized by fluctuating inventory management and a notable slowdown in receivables collection starting in 2024, which has collectively extended the cash conversion cycle.
- Inventory Management
- Inventory turnover remained largely stable between 2.36 and 2.58 for the first three years, with the average inventory processing period hovering between 141 and 155 days. However, a dip in efficiency occurred in 2025, with turnover reaching a low of 2.16 in June 2025 and the processing period peaking at 169 days. A partial recovery is evident by mid-2026, with turnover returning to 2.38.
- Receivables and Collections
- A clear trend of improvement in receivables turnover was observed from March 2022 (5.46) through September 2023 (6.95), corresponding with a reduction in the average collection period from 67 days to 53 days. This trend reversed after March 2024, as turnover steadily declined to 5.38 by June 2026, and the collection period lengthened to 68 days, suggesting a slowing of cash inflows from customers.
- Payables and Obligations
- Payables turnover increased from 4.43 in early 2022 to a peak of 5.54 in September 2023, indicating faster payments to suppliers. This peaked efficiency coincided with the shortest payment period of 66 days. Subsequently, the turnover ratio trended downward to 4.76 by June 2026, as the average payment period extended back to 77 days, effectively increasing the company's use of supplier credit.
- Working Capital Efficiency
- Working capital turnover exhibited significant volatility throughout the period. While it reached a peak of 6.61 in June 2024, it experienced sharp fluctuations, including a decline to 4.02 in December 2025. This volatility suggests inconsistent alignment between current assets and liabilities relative to the volume of sales generated.
- Operational Cycles
- The operating cycle followed the patterns of inventory and receivables, reaching a minimum of 194 days in December 2023 before expanding to a peak of 228 days in June 2025. Consequently, the cash conversion cycle, which measures the time between paying for inputs and receiving cash from sales, trended upward from a low of 124 days in December 2022 to 144 days by June 2026. This indicates a general increase in the amount of capital tied up in operations over the long term.
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Turnover Ratios
Average No. Days
Inventory Turnover
Caterpillar Inc., inventory turnover calculation (quarterly data)
| Jun 30, 2026 | 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) | ||||||||||||||||||||||||
| Cost of goods sold | 12,781) | 11,306) | 13,307) | 11,673) | 10,807) | 8,965) | 10,321) | 10,066) | 10,150) | 9,662) | 11,016) | 10,583) | 11,065) | 10,103) | 11,614) | 10,202) | 9,975) | 9,559) | ||||||
| Inventories | 20,627) | 19,626) | 18,135) | 18,958) | 18,595) | 17,862) | 16,827) | 17,312) | 17,082) | 16,953) | 16,565) | 17,580) | 17,746) | 17,633) | 16,270) | 16,860) | 15,881) | 15,038) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Inventory turnover1 | 2.38 | 2.40 | 2.47 | 2.20 | 2.16 | 2.21 | 2.39 | 2.36 | 2.42 | 2.50 | 2.58 | 2.47 | 2.42 | 2.38 | 2.54 | 2.36 | 2.40 | 2.46 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 1.01 | 1.01 | 1.01 | 0.97 | 0.86 | 0.80 | 0.78 | 0.85 | 0.78 | 0.82 | 0.88 | 0.87 | 0.88 | 0.83 | 0.81 | 0.78 | 0.74 | 0.74 | ||||||
| Eaton Corp. plc | 3.55 | 3.50 | 3.63 | 3.57 | 3.51 | 3.55 | 3.64 | 3.66 | 3.81 | 3.85 | 3.95 | 3.93 | 3.93 | 3.94 | 4.04 | 3.95 | 3.87 | 4.03 | ||||||
| GE Aerospace | 2.63 | 2.50 | 2.44 | 2.35 | 2.29 | 2.34 | 2.49 | 3.29 | 4.08 | 2.58 | 3.05 | 3.02 | 3.15 | 3.32 | 3.19 | 3.10 | 3.04 | 3.25 | ||||||
| Honeywell International Inc. | 3.77 | 3.73 | 3.83 | 3.43 | 3.35 | 3.59 | 3.70 | 3.73 | 3.69 | 3.65 | 3.72 | 3.76 | 3.82 | 3.90 | 4.04 | 4.09 | 4.06 | 4.20 | ||||||
| Lockheed Martin Corp. | 15.40 | 15.93 | 19.13 | 17.97 | 17.84 | 17.94 | 18.46 | 19.41 | 20.21 | 18.67 | 18.87 | 17.88 | 16.82 | 16.63 | 18.68 | 18.09 | 16.20 | 18.12 | ||||||
| RTX Corp. | 5.17 | 5.09 | 5.30 | 4.97 | 4.77 | 4.83 | 5.12 | 4.74 | 4.64 | 4.76 | 4.83 | 4.60 | 4.68 | 4.81 | 5.03 | 5.03 | 5.14 | 5.33 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Inventory turnover
= (Cost of goods soldQ2 2026
+ Cost of goods soldQ1 2026
+ Cost of goods soldQ4 2025
+ Cost of goods soldQ3 2025)
÷ Inventories
= (12,781 + 11,306 + 13,307 + 11,673)
÷ 20,627 = 2.38
2 Click competitor name to see calculations.
Analysis of inventory management reveals a period of consistent asset accumulation coupled with fluctuating turnover efficiency. While the cost of goods sold exhibits an overall upward trajectory over the long term, the rate of inventory growth has periodically outpaced operational throughput, leading to observable variations in the turnover ratio.
- Inventory Accumulation Trends
- A sustained increase in inventory levels is evident, with values rising from 15,038 million US$ in March 2022 to 20,627 million US$ by June 2026. This steady growth indicates a significant expansion of the company's stock holdings over the observed period.
- Cost of Goods Sold (COGS) Volatility
- The cost of goods sold demonstrated periodic fluctuations, ranging from a low of 8,965 million US$ in March 2024 to a peak of 13,307 million US$ in December 2025. The data suggests a general increase in operational volume toward the end of the analyzed period, particularly between 2025 and 2026.
- Inventory Turnover Performance
- The inventory turnover ratio remained relatively stable, oscillating within a narrow band between 2.16 and 2.58. A peak in efficiency was recorded in December 2023 at 2.58, followed by a decline to a period low of 2.16 in June 2025. This dip indicates a temporary reduction in inventory velocity, where the growth in inventory levels exceeded the growth in the cost of goods sold.
- Operational Correlation
- A divergence is observed in the first half of 2025, where inventory levels climbed toward 18,595 million US$ while the turnover ratio reached its lowest point. This suggests a strategic buildup of stock or a temporary slowdown in sales relative to procurement. Efficiency recovered toward the end of 2025, coinciding with the peak in the cost of goods sold.
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Receivables Turnover
Caterpillar Inc., receivables turnover calculation (quarterly data)
| Jun 30, 2026 | 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) | ||||||||||||||||||||||||
| Sales of Machinery, Power & Energy | 19,581) | 16,473) | 18,202) | 16,726) | 15,674) | 13,378) | 15,332) | 15,231) | 15,840) | 14,960) | 16,237) | 15,988) | 16,545) | 15,099) | 15,871) | 14,278) | 13,539) | 12,886) | ||||||
| Receivables, trade and other | 13,188) | 11,447) | 10,920) | 10,146) | 9,704) | 9,116) | 9,282) | 9,086) | 9,421) | 9,296) | 9,310) | 9,134) | 9,416) | 9,230) | 8,856) | 8,158) | 8,393) | 9,135) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Receivables turnover1 | 5.38 | 5.86 | 5.86 | 6.02 | 6.14 | 6.56 | 6.61 | 6.85 | 6.69 | 6.86 | 6.86 | 6.95 | 6.56 | 6.37 | 6.39 | 6.59 | 6.10 | 5.46 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 26.74 | 26.45 | 30.63 | 24.37 | 23.61 | 21.67 | 25.28 | 25.33 | 23.31 | 25.83 | 29.37 | 24.99 | 24.99 | 24.65 | 26.46 | 22.98 | 20.27 | 25.37 | ||||||
| Eaton Corp. plc | 4.50 | 4.48 | 5.10 | 4.79 | 4.74 | 4.97 | 5.39 | 5.04 | 4.97 | 5.06 | 5.18 | 5.07 | 5.01 | 5.05 | 5.09 | 5.28 | 5.15 | 5.39 | ||||||
| GE Aerospace | 3.84 | 3.60 | 3.59 | 3.78 | 3.61 | 3.73 | 3.77 | 4.90 | 6.13 | 3.90 | 4.17 | 4.61 | 4.67 | 5.00 | 4.09 | 4.19 | 4.39 | 4.43 | ||||||
| Honeywell International Inc. | 4.56 | 4.67 | 4.91 | 4.34 | 4.31 | 4.64 | 4.92 | 4.80 | 4.81 | 4.94 | 4.87 | 4.65 | 4.52 | 4.57 | 4.77 | 4.74 | 4.45 | 4.82 | ||||||
| Lockheed Martin Corp. | 22.95 | 32.35 | 19.24 | 19.08 | 21.73 | 35.48 | 30.22 | 33.30 | 24.26 | 30.86 | 31.69 | 28.14 | 19.67 | 25.61 | 26.34 | 26.06 | 18.87 | 26.02 | ||||||
| RTX Corp. | 6.71 | 6.98 | 6.03 | 6.70 | 6.75 | 7.15 | 7.36 | 7.83 | 7.06 | 6.91 | 6.36 | 6.67 | 7.13 | 6.81 | 7.36 | 7.15 | 6.28 | 7.15 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Receivables turnover
= (Sales of Machinery, Power & EnergyQ2 2026
+ Sales of Machinery, Power & EnergyQ1 2026
+ Sales of Machinery, Power & EnergyQ4 2025
+ Sales of Machinery, Power & EnergyQ3 2025)
÷ Receivables, trade and other
= (19,581 + 16,473 + 18,202 + 16,726)
÷ 13,188 = 5.38
2 Click competitor name to see calculations.
An analysis of the short-term operating activity reveals a distinct cyclical pattern in the efficiency of receivables management. The period is characterized by an initial phase of improving collection efficiency followed by a gradual decline in turnover performance as receivables grew at a faster rate than sales in the later quarters.
- Sales Performance
- Revenue from Machinery, Power & Energy exhibited a general upward trajectory, rising from 12,886 million USD in March 2022 to a peak of 19,581 million USD by June 2026. While growth was non-linear with occasional quarterly dips, the overall trend indicates significant expansion in top-line activity over the observed period.
- Trade Receivables Trends
- Receivables remained relatively stable between 8,158 million USD and 9,421 million USD from March 2022 through December 2024. However, a notable shift occurred starting in March 2025, where receivables began a steady ascent, reaching 13,188 million USD by June 2026. This represents a substantial increase in the amount of capital tied up in unpaid customer invoices during the final year of the analysis.
- Receivables Turnover Ratio
- The turnover ratio initially improved, climbing from 5.46 in March 2022 to a peak of 6.95 in September 2023, suggesting enhanced efficiency in converting receivables into cash. This efficiency was maintained within a range of 6.61 to 6.86 through December 2024. Subsequently, a consistent downward trend emerged, with the ratio falling to 5.38 by June 2026. This decline suggests a lengthening of the average collection period, coinciding with the sharp rise in total receivables relative to sales growth.
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Payables Turnover
Caterpillar Inc., payables turnover calculation (quarterly data)
| Jun 30, 2026 | 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) | ||||||||||||||||||||||||
| Cost of goods sold | 12,781) | 11,306) | 13,307) | 11,673) | 10,807) | 8,965) | 10,321) | 10,066) | 10,150) | 9,662) | 11,016) | 10,583) | 11,065) | 10,103) | 11,614) | 10,202) | 9,975) | 9,559) | ||||||
| Accounts payable | 10,313) | 9,641) | 8,968) | 8,729) | 8,563) | 7,792) | 7,675) | 7,705) | 7,575) | 7,778) | 7,906) | 7,827) | 8,443) | 8,951) | 8,689) | 8,260) | 8,092) | 8,361) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Payables turnover1 | 4.76 | 4.88 | 4.99 | 4.78 | 4.69 | 5.07 | 5.24 | 5.31 | 5.47 | 5.44 | 5.41 | 5.54 | 5.09 | 4.68 | 4.76 | 4.81 | 4.72 | 4.43 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 6.25 | 6.40 | 6.50 | 6.81 | 6.72 | 6.43 | 6.03 | 5.79 | 5.61 | 5.92 | 5.86 | 6.18 | 6.28 | 6.37 | 6.18 | 6.36 | 6.17 | 6.73 | ||||||
| Eaton Corp. plc | 3.55 | 3.67 | 4.11 | 4.31 | 4.27 | 4.26 | 4.18 | 4.24 | 4.31 | 4.38 | 4.39 | 4.48 | 4.52 | 4.55 | 4.51 | 4.61 | 4.43 | 4.67 | ||||||
| GE Aerospace | 3.02 | 2.89 | 2.87 | 2.88 | 2.72 | 2.85 | 3.07 | 4.08 | 5.01 | 2.99 | 3.27 | 3.26 | 3.41 | 3.57 | 2.98 | 3.14 | 3.14 | 3.32 | ||||||
| Honeywell International Inc. | 3.78 | 3.94 | 3.74 | 3.34 | 3.31 | 3.52 | 3.46 | 3.56 | 3.60 | 3.57 | 3.36 | 3.51 | 3.49 | 3.50 | 3.53 | 3.68 | 3.63 | 3.66 | ||||||
| Lockheed Martin Corp. | 13.82 | 14.39 | 18.58 | 17.57 | 18.06 | 16.89 | 28.85 | 19.48 | 19.07 | 17.38 | 25.56 | 15.51 | 16.97 | 17.65 | 27.25 | 21.48 | 24.07 | 21.92 | ||||||
| RTX Corp. | 4.38 | 4.51 | 4.46 | 4.72 | 4.98 | 4.89 | 5.07 | 5.40 | 5.54 | 5.60 | 5.31 | 5.37 | 5.54 | 5.42 | 5.40 | 5.82 | 5.36 | 6.28 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Payables turnover
= (Cost of goods soldQ2 2026
+ Cost of goods soldQ1 2026
+ Cost of goods soldQ4 2025
+ Cost of goods soldQ3 2025)
÷ Accounts payable
= (12,781 + 11,306 + 13,307 + 11,673)
÷ 10,313 = 4.76
2 Click competitor name to see calculations.
The analysis of short-term operating activity indicates a fluctuating trend in the payables turnover ratio over the observed period. The ratio began at 4.43 in March 2022, reached a peak of 5.54 in September 2023, and subsequently trended downward to end at 4.76 in June 2026. This movement suggests a period of accelerated supplier payments followed by a strategic extension of payment terms or an increase in credit utilization.
- Payables Turnover Volatility
- A steady increase in the turnover ratio is observed from March 2022 through September 2023, where the ratio climbed from 4.43 to 5.54. This indicates a period where the cost of goods sold grew at a faster rate than the accounts payable balance, resulting in a higher frequency of supplier payments. Following this peak, the ratio entered a gradual decline, stabilizing between 4.70 and 5.00 throughout 2025 and 2026.
- Cost of Goods Sold (COGS) and Payables Correlation
- COGS demonstrated an overall upward trajectory, rising from 9,559 million US$ in March 2022 to a peak of 13,307 million US$ in December 2025. While COGS increased, accounts payable remained relatively stagnant or declined between March 2022 and June 2024, dropping from 8,361 million US$ to a low of 7,575 million US$. This inverse relationship during the 2022-2024 period explains the elevation in the turnover ratio.
- Liquidity Management Shift
- A notable shift in working capital management is evident starting in March 2025. Accounts payable began to rise sharply, increasing from 7,792 million US$ in December 2023 to 10,313 million US$ by June 2026. This expansion of payables occurred alongside rising COGS, which effectively lowered the payables turnover ratio. This pattern suggests a strategic decision to retain more cash within the business by extending the duration of liabilities owed to suppliers.
- Long-term Operational Pattern
- The convergence of the turnover ratio toward the 4.7-4.8 range by the end of the period suggests a return to a baseline operating efficiency similar to that observed in early 2022. The synchronization of higher production costs with higher payable balances indicates that the scale of operations has expanded while the relative payment velocity has been normalized to support increased capital requirements.
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Working Capital Turnover
Caterpillar Inc., working capital turnover calculation (quarterly data)
| Jun 30, 2026 | 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) | ||||||||||||||||||||||||
| Current assets | 54,450) | 48,568) | 52,485) | 49,818) | 46,755) | 43,019) | 45,682) | 44,946) | 43,096) | 43,664) | 46,949) | 48,005) | 47,000) | 45,660) | 43,785) | 42,577) | 41,982) | 42,570) | ||||||
| Less: Current liabilities | 39,790) | 35,902) | 36,558) | 35,991) | 34,934) | 32,595) | 32,272) | 32,218) | 33,564) | 32,371) | 34,728) | 33,124) | 35,314) | 31,842) | 31,531) | 30,202) | 28,963) | 29,532) | ||||||
| Working capital | 14,660) | 12,666) | 15,927) | 13,827) | 11,821) | 10,424) | 13,410) | 12,728) | 9,532) | 11,293) | 12,221) | 14,881) | 11,686) | 13,818) | 12,254) | 12,375) | 13,019) | 13,038) | ||||||
| Sales of Machinery, Power & Energy | 19,581) | 16,473) | 18,202) | 16,726) | 15,674) | 13,378) | 15,332) | 15,231) | 15,840) | 14,960) | 16,237) | 15,988) | 16,545) | 15,099) | 15,871) | 14,278) | 13,539) | 12,886) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Working capital turnover1 | 4.84 | 5.30 | 4.02 | 4.42 | 5.04 | 5.73 | 4.58 | 4.89 | 6.61 | 5.64 | 5.23 | 4.27 | 5.29 | 4.25 | 4.62 | 4.35 | 3.93 | 3.83 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 6.24 | 4.96 | 4.40 | 4.29 | 3.15 | 2.89 | 2.15 | 6.04 | 4.13 | 5.76 | 5.78 | 5.46 | 4.80 | 4.61 | 3.42 | 3.13 | 2.87 | 2.51 | ||||||
| Eaton Corp. plc | 10.49 | 12.60 | 9.20 | 10.02 | 11.29 | 8.69 | 6.31 | 5.84 | 5.33 | 5.58 | 5.91 | 6.61 | 6.16 | 7.01 | 8.70 | 10.69 | — | — | ||||||
| GE Aerospace | — | 134.54 | 26.19 | 14.05 | 28.44 | 13.68 | 10.83 | 9.60 | 11.15 | 6.93 | 7.24 | 8.11 | 5.70 | 5.87 | 7.93 | 13.29 | 10.55 | 7.14 | ||||||
| Honeywell International Inc. | 7.79 | 4.43 | 5.37 | 4.78 | 6.00 | 6.87 | 5.79 | 4.39 | 8.63 | 3.37 | 7.39 | 5.98 | 5.16 | 7.79 | 7.03 | 7.91 | 8.84 | 8.07 | ||||||
| Lockheed Martin Corp. | 16.77 | 25.12 | 37.02 | 24.76 | — | 44.49 | 29.25 | 13.20 | 15.88 | 13.24 | 18.85 | 11.04 | 10.56 | 12.81 | 12.93 | 14.03 | 14.28 | 15.14 | ||||||
| RTX Corp. | 140.18 | 63.20 | 57.24 | 22.14 | 257.23 | 279.93 | — | — | — | 23.64 | 41.62 | 44.25 | 16.99 | 12.76 | 20.15 | 19.15 | 17.77 | 11.41 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Working capital turnover
= (Sales of Machinery, Power & EnergyQ2 2026
+ Sales of Machinery, Power & EnergyQ1 2026
+ Sales of Machinery, Power & EnergyQ4 2025
+ Sales of Machinery, Power & EnergyQ3 2025)
÷ Working capital
= (19,581 + 16,473 + 18,202 + 16,726)
÷ 14,660 = 4.84
2 Click competitor name to see calculations.
Analysis of short-term operating activity reveals a dynamic relationship between current capital investment and revenue generation. While sales show a consistent long-term upward trajectory, working capital has experienced significant volatility, leading to corresponding fluctuations in the turnover efficiency ratio.
- Working Capital Trends
- Working capital levels fluctuated considerably over the analyzed period, reaching a minimum of US$ 9,532 million in June 2024 and a peak of US$ 15,927 million in December 2025. These movements indicate a non-linear approach to managing current assets and liabilities, with periodic contractions and expansions in the net investment of short-term resources.
- Revenue Performance
- Sales of Machinery, Power & Energy demonstrated a general growth trend, rising from US$ 12,886 million in March 2022 to US$ 19,581 million by June 2026. This growth represents a significant expansion in the volume of business activity over the timeframe.
- Working Capital Turnover Dynamics
- The working capital turnover ratio exhibited notable volatility, starting at 3.83 and peaking at 6.61 in June 2024. This peak coincided with the lowest point of working capital, signifying a period of maximum efficiency where minimal short-term capital was required to support substantial sales volume.
- A downward trend in turnover efficiency was observed between June 2024 and December 2025, where the ratio fell to 4.02. This decline was primarily driven by a sharp increase in working capital to US$ 15,927 million, suggesting that the investment in current assets grew faster than the associated revenue growth during this interval.
- The final observed period indicates a recovery in efficiency, with the ratio rising to 4.84 by June 2026, supported by a strong increase in sales to US$ 19,581 million despite a relatively high working capital base of US$ 14,660 million.
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Average Inventory Processing Period
Caterpillar Inc., average inventory processing period calculation (quarterly data)
| Jun 30, 2026 | 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 | ||||||||||||||||||||||||
| Inventory turnover | 2.38 | 2.40 | 2.47 | 2.20 | 2.16 | 2.21 | 2.39 | 2.36 | 2.42 | 2.50 | 2.58 | 2.47 | 2.42 | 2.38 | 2.54 | 2.36 | 2.40 | 2.46 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average inventory processing period1 | 153 | 152 | 148 | 166 | 169 | 165 | 153 | 155 | 151 | 146 | 141 | 148 | 151 | 154 | 144 | 155 | 152 | 148 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 360 | 363 | 363 | 377 | 424 | 459 | 466 | 428 | 470 | 443 | 415 | 419 | 416 | 438 | 452 | 468 | 494 | 493 | ||||||
| Eaton Corp. plc | 103 | 104 | 101 | 102 | 104 | 103 | 100 | 100 | 96 | 95 | 92 | 93 | 93 | 93 | 90 | 92 | 94 | 90 | ||||||
| GE Aerospace | 139 | 146 | 150 | 156 | 160 | 156 | 147 | 111 | 89 | 141 | 120 | 121 | 116 | 110 | 114 | 118 | 120 | 112 | ||||||
| Honeywell International Inc. | 97 | 98 | 95 | 106 | 109 | 102 | 99 | 98 | 99 | 100 | 98 | 97 | 96 | 94 | 90 | 89 | 90 | 87 | ||||||
| Lockheed Martin Corp. | 24 | 23 | 19 | 20 | 20 | 20 | 20 | 19 | 18 | 20 | 19 | 20 | 22 | 22 | 20 | 20 | 23 | 20 | ||||||
| RTX Corp. | 71 | 72 | 69 | 73 | 77 | 76 | 71 | 77 | 79 | 77 | 76 | 79 | 78 | 76 | 73 | 73 | 71 | 69 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.38 = 153
2 Click competitor name to see calculations.
The operational activity ratios indicate a fluctuating cycle in inventory management, characterized by a consistent reciprocal relationship between the inventory turnover ratio and the average inventory processing period. Throughout the observed timeframe, the processing period generally oscillates between 141 and 169 days, reflecting varying levels of efficiency in converting inventory into sales.
- Efficiency Peaks and Lows
- The highest level of operational efficiency was reached toward the end of 2023, with the average inventory processing period dropping to a minimum of 141 days by December 31, 2023. This coincided with the peak inventory turnover ratio of 2.58. In contrast, a notable decline in velocity occurred during the first half of 2025, where the processing period extended to a maximum of 169 days by June 30, 2025, while the turnover ratio fell to its lowest point of 2.16.
- Periodic Trends and Volatility
- A pattern of moderate fluctuation was evident throughout 2022 and early 2023, with processing times remaining largely within a range of 144 to 155 days. Following the efficiency gains in late 2023, the metrics showed a steady increase in the processing period throughout 2024, peaking at 155 days in September before experiencing a slight contraction by the end of the year.
- Stabilization Phase
- Following the significant volatility observed during 2025, the metrics indicate a return toward historical averages. By the first half of 2026, the average inventory processing period stabilized between 152 and 153 days, with the turnover ratio settling between 2.38 and 2.40, suggesting a normalization of inventory flow and processing cycles.
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Average Receivable Collection Period
Caterpillar Inc., average receivable collection period calculation (quarterly data)
| Jun 30, 2026 | 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 | ||||||||||||||||||||||||
| Receivables turnover | 5.38 | 5.86 | 5.86 | 6.02 | 6.14 | 6.56 | 6.61 | 6.85 | 6.69 | 6.86 | 6.86 | 6.95 | 6.56 | 6.37 | 6.39 | 6.59 | 6.10 | 5.46 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average receivable collection period1 | 68 | 62 | 62 | 61 | 59 | 56 | 55 | 53 | 55 | 53 | 53 | 53 | 56 | 57 | 57 | 55 | 60 | 67 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 14 | 14 | 12 | 15 | 15 | 17 | 14 | 14 | 16 | 14 | 12 | 15 | 15 | 15 | 14 | 16 | 18 | 14 | ||||||
| Eaton Corp. plc | 81 | 81 | 72 | 76 | 77 | 73 | 68 | 72 | 73 | 72 | 70 | 72 | 73 | 72 | 72 | 69 | 71 | 68 | ||||||
| GE Aerospace | 95 | 101 | 102 | 97 | 101 | 98 | 97 | 75 | 60 | 93 | 87 | 79 | 78 | 73 | 89 | 87 | 83 | 82 | ||||||
| Honeywell International Inc. | 80 | 78 | 74 | 84 | 85 | 79 | 74 | 76 | 76 | 74 | 75 | 79 | 81 | 80 | 77 | 77 | 82 | 76 | ||||||
| Lockheed Martin Corp. | 16 | 11 | 19 | 19 | 17 | 10 | 12 | 11 | 15 | 12 | 12 | 13 | 19 | 14 | 14 | 14 | 19 | 14 | ||||||
| RTX Corp. | 54 | 52 | 61 | 54 | 54 | 51 | 50 | 47 | 52 | 53 | 57 | 55 | 51 | 54 | 50 | 51 | 58 | 51 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.38 = 68
2 Click competitor name to see calculations.
The analysis of receivables management reveals a cyclical trend in operational efficiency, characterized by an initial period of improvement followed by a gradual decline in the speed of credit recovery.
- Receivables Turnover Trends
- An upward trajectory is observed from March 2022, where the turnover ratio stood at 5.46, peaking at 6.95 in September 2023. This period indicates an increasing efficiency in converting receivables into cash. However, from December 2023 through June 2026, a consistent downward trend emerged, with the ratio falling to 5.38, marking a return to levels lower than those recorded at the start of the analyzed period.
- Average Receivable Collection Period Analysis
- The collection period shows a direct inverse correlation with the turnover ratio. The timeframe to collect receivables decreased from 67 days in March 2022 to a minimum of 53 days, a level maintained between September 2023 and March 2024. Following this trough, the collection period expanded steadily, reaching 68 days by June 2026. This extension suggests a slowing of cash inflows from customers over the final two years of the period.
- Operational Efficiency Insights
- Maximum operational efficiency in receivables management was achieved between September 2023 and March 2024, during which the company maintained its lowest collection cycle of 53 days. The subsequent increase to 68 days by mid-2026 represents a complete reversal of the gains achieved during the 2022-2023 period, indicating a potential shift in credit terms or a decline in customer payment velocity.
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Operating Cycle
Caterpillar Inc., operating cycle calculation (quarterly data)
No. days
| Jun 30, 2026 | 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 | ||||||||||||||||||||||||
| Average inventory processing period | 153 | 152 | 148 | 166 | 169 | 165 | 153 | 155 | 151 | 146 | 141 | 148 | 151 | 154 | 144 | 155 | 152 | 148 | ||||||
| Average receivable collection period | 68 | 62 | 62 | 61 | 59 | 56 | 55 | 53 | 55 | 53 | 53 | 53 | 56 | 57 | 57 | 55 | 60 | 67 | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Operating cycle1 | 221 | 214 | 210 | 227 | 228 | 221 | 208 | 208 | 206 | 199 | 194 | 201 | 207 | 211 | 201 | 210 | 212 | 215 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 374 | 377 | 375 | 392 | 439 | 476 | 480 | 442 | 486 | 457 | 427 | 434 | 431 | 453 | 466 | 484 | 512 | 507 | ||||||
| Eaton Corp. plc | 184 | 185 | 173 | 178 | 181 | 176 | 168 | 172 | 169 | 167 | 162 | 165 | 166 | 165 | 162 | 161 | 165 | 158 | ||||||
| GE Aerospace | 234 | 247 | 252 | 253 | 261 | 254 | 244 | 186 | 149 | 234 | 207 | 200 | 194 | 183 | 203 | 205 | 203 | 194 | ||||||
| Honeywell International Inc. | 177 | 176 | 169 | 190 | 194 | 181 | 173 | 174 | 175 | 174 | 173 | 176 | 177 | 174 | 167 | 166 | 172 | 163 | ||||||
| Lockheed Martin Corp. | 40 | 34 | 38 | 39 | 37 | 30 | 32 | 30 | 33 | 32 | 31 | 33 | 41 | 36 | 34 | 34 | 42 | 34 | ||||||
| RTX Corp. | 125 | 124 | 130 | 127 | 131 | 127 | 121 | 124 | 131 | 130 | 133 | 134 | 129 | 130 | 123 | 124 | 129 | 120 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 153 + 68 = 221
2 Click competitor name to see calculations.
The operating cycle demonstrates a cyclical trajectory over the analyzed period, characterized by an initial phase of efficiency gains followed by a period of expansion and subsequent volatility. The overall duration of the cycle reached its lowest point of 194 days in December 2023, before peaking at 228 days in June 2025. By June 2026, the cycle had settled at 221 days, reflecting a general increase in the time required to convert resources into cash compared to the early 2023 lows.
- Average Inventory Processing Period
- The inventory processing period exhibited considerable fluctuation, with a general range between 141 and 169 days. A downward trend was evident throughout 2023, reaching a minimum of 141 days in December. This was followed by a significant increase during the first half of 2025, peaking at 169 days in June. A sharp correction occurred by December 2025, bringing the period down to 148 days, before stabilizing around 153 days by mid-2026. These movements suggest periodic shifts in inventory management or supply chain volatility.
- Average Receivable Collection Period
- The collection period showed a distinct pattern of improvement followed by a gradual decline in efficiency. From March 2022 to September 2023, the period decreased from 67 days to 53 days, indicating enhanced credit collection capabilities. This stability persisted through 2024. However, starting in early 2025, a consistent upward trend is observed, with the collection period rising steadily to 68 days by June 2026. This suggests a lengthening of the time required to collect payments from customers.
- Operating Cycle Integration
- The operating cycle is primarily driven by the volatility in inventory processing, though the recent lengthening of the receivable collection period has added upward pressure to the total cycle. The convergence of peak inventory days and rising collection days in mid-2025 resulted in the maximum operating cycle of 228 days. The subsequent contraction in the cycle was driven almost exclusively by a reduction in inventory processing time, as the receivable collection period continued to trend upward.
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Average Payables Payment Period
Caterpillar Inc., average payables payment period calculation (quarterly data)
| Jun 30, 2026 | 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 | ||||||||||||||||||||||||
| Payables turnover | 4.76 | 4.88 | 4.99 | 4.78 | 4.69 | 5.07 | 5.24 | 5.31 | 5.47 | 5.44 | 5.41 | 5.54 | 5.09 | 4.68 | 4.76 | 4.81 | 4.72 | 4.43 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average payables payment period1 | 77 | 75 | 73 | 76 | 78 | 72 | 70 | 69 | 67 | 67 | 67 | 66 | 72 | 78 | 77 | 76 | 77 | 82 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 58 | 57 | 56 | 54 | 54 | 57 | 61 | 63 | 65 | 62 | 62 | 59 | 58 | 57 | 59 | 57 | 59 | 54 | ||||||
| Eaton Corp. plc | 103 | 100 | 89 | 85 | 85 | 86 | 87 | 86 | 85 | 83 | 83 | 82 | 81 | 80 | 81 | 79 | 82 | 78 | ||||||
| GE Aerospace | 121 | 126 | 127 | 127 | 134 | 128 | 119 | 89 | 73 | 122 | 112 | 112 | 107 | 102 | 123 | 116 | 116 | 110 | ||||||
| Honeywell International Inc. | 97 | 93 | 98 | 109 | 110 | 104 | 105 | 103 | 101 | 102 | 109 | 104 | 105 | 104 | 103 | 99 | 101 | 100 | ||||||
| Lockheed Martin Corp. | 26 | 25 | 20 | 21 | 20 | 22 | 13 | 19 | 19 | 21 | 14 | 24 | 22 | 21 | 13 | 17 | 15 | 17 | ||||||
| RTX Corp. | 83 | 81 | 82 | 77 | 73 | 75 | 72 | 68 | 66 | 65 | 69 | 68 | 66 | 67 | 68 | 63 | 68 | 58 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.76 = 77
2 Click competitor name to see calculations.
Analysis of the operating activity ratios reveals a cyclical trend in the management of accounts payable, characterized by an initial acceleration of payments followed by a gradual return to longer payment terms.
- Payables Turnover Trends
- The payables turnover ratio exhibited a consistent upward trajectory from March 2022, rising from 4.43 to a peak of 5.54 in September 2023. This increase indicates a higher frequency of supplier payments during this period. Following this peak, the ratio remained relatively stable, fluctuating between 5.24 and 5.47 until March 2025. A subsequent decline is observed in the later quarters, with the ratio moderating to a range between 4.69 and 4.99 by June 2026.
- Average Payables Payment Period Dynamics
- The average payables payment period demonstrates an inverse correlation with the turnover ratio. An initial downward trend is observed, where the payment period contracted from 82 days in March 2022 to a low of 66 days in September 2023. A period of high stability followed between December 2023 and June 2024, with the duration holding steady at 67 days. From September 2024 onward, a gradual expansion in the payment window occurs, with the period increasing to 78 days by June 2025 and ultimately settling at 77 days by June 2026.
- Working Capital Management Insights
- The data suggests a shift in working capital strategy over the analyzed timeframe. The reduction in the payment period through late 2023 indicates a phase of aggressive liability settlement. Conversely, the upward trend in the payment period observed from 2024 through 2026 suggests a strategic shift toward optimizing cash preservation by extending the duration of payables, effectively increasing the company's available operating liquidity.
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Cash Conversion Cycle
Caterpillar Inc., cash conversion cycle calculation (quarterly data)
No. days
| Jun 30, 2026 | 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 | ||||||||||||||||||||||||
| Average inventory processing period | 153 | 152 | 148 | 166 | 169 | 165 | 153 | 155 | 151 | 146 | 141 | 148 | 151 | 154 | 144 | 155 | 152 | 148 | ||||||
| Average receivable collection period | 68 | 62 | 62 | 61 | 59 | 56 | 55 | 53 | 55 | 53 | 53 | 53 | 56 | 57 | 57 | 55 | 60 | 67 | ||||||
| Average payables payment period | 77 | 75 | 73 | 76 | 78 | 72 | 70 | 69 | 67 | 67 | 67 | 66 | 72 | 78 | 77 | 76 | 77 | 82 | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Cash conversion cycle1 | 144 | 139 | 137 | 151 | 150 | 149 | 138 | 139 | 139 | 132 | 127 | 135 | 135 | 133 | 124 | 134 | 135 | 133 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 316 | 320 | 319 | 338 | 385 | 419 | 419 | 379 | 421 | 395 | 365 | 375 | 373 | 396 | 407 | 427 | 453 | 453 | ||||||
| Eaton Corp. plc | 81 | 85 | 84 | 93 | 96 | 90 | 81 | 86 | 84 | 84 | 79 | 83 | 85 | 85 | 81 | 82 | 83 | 80 | ||||||
| GE Aerospace | 113 | 121 | 125 | 126 | 127 | 126 | 125 | 97 | 76 | 112 | 95 | 88 | 87 | 81 | 80 | 89 | 87 | 84 | ||||||
| Honeywell International Inc. | 80 | 83 | 71 | 81 | 84 | 77 | 68 | 71 | 74 | 72 | 64 | 72 | 72 | 70 | 64 | 67 | 71 | 63 | ||||||
| Lockheed Martin Corp. | 14 | 9 | 18 | 18 | 17 | 8 | 19 | 11 | 14 | 11 | 17 | 9 | 19 | 15 | 21 | 17 | 27 | 17 | ||||||
| RTX Corp. | 42 | 43 | 48 | 50 | 58 | 52 | 49 | 56 | 65 | 65 | 64 | 66 | 63 | 63 | 55 | 61 | 61 | 62 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 153 + 68 – 77 = 144
2 Click competitor name to see calculations.
The cash conversion cycle exhibits a general upward trajectory over the analyzed period, fluctuating between a minimum of 124 days and a maximum of 151 days. The overall efficiency of working capital management faced increased pressure particularly throughout 2025, and while a correction occurred toward the end of that year, the cycle remained elevated compared to early 2022 levels, concluding at 144 days in June 2026.
- Average Inventory Processing Period
- Inventory turnover remained relatively stable between 141 and 155 days from March 2022 through December 2023. A notable expansion occurred in 2025, with the period peaking at 169 days in June 2025, indicating a slowdown in the movement of goods. A subsequent contraction to 148 days by December 2025 suggests a period of inventory liquidation or increased sales velocity, although the period drifted back to 153 days by June 2026.
- Average Receivable Collection Period
- A positive trend in collection efficiency was observed initially, as the period decreased from 67 days in March 2022 to a low of 53 days by September 2023. This efficiency was largely maintained through 2024. However, beginning in early 2025, a gradual and consistent increase is evident, with the collection period rising to 68 days by June 2026, suggesting a potential extension of customer credit terms or a decline in payment promptness.
- Average Payables Payment Period
- Payment durations for suppliers tightened from 82 days in March 2022 to a low of 66 days in September 2023. For the subsequent years, the period fluctuated between 67 and 78 days. A temporary peak of 78 days in June 2025 coincided with the peak in inventory processing times, indicating a strategic effort to offset increased working capital requirements by extending payments to vendors.
- Cash Conversion Cycle Dynamics
- The overall cash conversion cycle is primarily influenced by the volatility in inventory processing. The cycle peaked at 151 days in September 2025, driven by the combination of elevated inventory days and rising receivable collection times. Although the extension of the payables payment period provided a partial buffer, it was insufficient to neutralize the impact of the slower asset turnover. The final recording of 144 days in June 2026 represents a net increase in the time required to convert operational investments into cash compared to the 133 days observed at the start of the period.
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