Analysis of Short-term (Operating) Activity Ratios
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
Based on: 10-K (reporting date: 2024-12-31), 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).
| 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 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Caterpillar Inc. receivables turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Caterpillar Inc. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Caterpillar Inc. working capital turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
| 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. number of days of inventory outstanding improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
| 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. operating cycle improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
| 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 2022 to 2023 but then slightly increased from 2023 to 2024. |
| 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. cash conversion cycle deteriorated from 2022 to 2023 and from 2023 to 2024. |
Inventory Turnover
Caterpillar Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of goods sold | 40,199) | 42,767) | 41,350) | 35,513) | 29,082) | |
| Inventories | 16,827) | 16,565) | 16,270) | 14,038) | 11,402) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 2.39 | 2.58 | 2.54 | 2.53 | 2.55 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Boeing Co. | 0.78 | 0.88 | 0.81 | 0.75 | 0.78 | |
| Eaton Corp. plc | 3.64 | 3.95 | 4.04 | 4.48 | 5.88 | |
| GE Aerospace | 2.49 | 3.05 | 3.19 | 3.40 | 3.80 | |
| Honeywell International Inc. | 3.70 | 3.72 | 4.04 | 4.29 | 4.94 | |
| Lockheed Martin Corp. | 18.46 | 18.87 | 18.68 | 19.45 | 16.01 | |
| RTX Corp. | 5.12 | 4.83 | 5.03 | 5.65 | 5.11 | |
| Inventory Turnover, Sector | ||||||
| Capital Goods | 2.14 | 2.30 | 2.28 | 2.28 | 2.28 | |
| Inventory Turnover, Industry | ||||||
| Industrials | 4.06 | 4.23 | 4.28 | 4.03 | 3.71 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Inventory turnover = Cost of goods sold ÷ Inventories
= 40,199 ÷ 16,827 = 2.39
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 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Receivables Turnover
Caterpillar Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales of Machinery, Energy & Transportation | 61,363) | 63,869) | 56,574) | 48,188) | 39,022) | |
| Receivables, trade and other | 9,282) | 9,310) | 8,856) | 8,477) | 7,317) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 6.61 | 6.86 | 6.39 | 5.68 | 5.33 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Boeing Co. | 25.28 | 29.37 | 26.46 | 23.58 | 29.75 | |
| Eaton Corp. plc | 5.39 | 5.18 | 5.09 | 5.95 | 6.15 | |
| GE Aerospace | 3.77 | 4.17 | 4.09 | 4.55 | 4.37 | |
| Honeywell International Inc. | 4.92 | 4.87 | 4.77 | 5.04 | 4.78 | |
| Lockheed Martin Corp. | 30.22 | 31.69 | 26.34 | 34.15 | 33.06 | |
| RTX Corp. | 7.36 | 6.36 | 7.36 | 6.66 | 6.11 | |
| Receivables Turnover, Sector | ||||||
| Capital Goods | 8.05 | 7.68 | 7.36 | 7.57 | 7.30 | |
| Receivables Turnover, Industry | ||||||
| Industrials | 9.05 | 8.61 | 8.17 | 7.76 | 7.57 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Receivables turnover = Sales of Machinery, Energy & Transportation ÷ Receivables, trade and other
= 61,363 ÷ 9,282 = 6.61
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 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Payables Turnover
Caterpillar Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of goods sold | 40,199) | 42,767) | 41,350) | 35,513) | 29,082) | |
| Accounts payable | 7,675) | 7,906) | 8,689) | 8,154) | 6,128) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 5.24 | 5.41 | 4.76 | 4.36 | 4.75 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Boeing Co. | 6.03 | 5.86 | 6.18 | 6.40 | 4.94 | |
| Eaton Corp. plc | 4.18 | 4.39 | 4.51 | 4.75 | 6.24 | |
| GE Aerospace | 3.07 | 3.27 | 2.98 | 3.32 | 3.67 | |
| Honeywell International Inc. | 3.46 | 3.36 | 3.53 | 3.40 | 3.86 | |
| Lockheed Martin Corp. | 28.85 | 25.56 | 27.25 | 74.34 | 64.48 | |
| RTX Corp. | 5.07 | 5.31 | 5.40 | 5.93 | 5.56 | |
| Payables Turnover, Sector | ||||||
| Capital Goods | 5.73 | 5.42 | 5.21 | 5.60 | 5.54 | |
| Payables Turnover, Industry | ||||||
| Industrials | 8.65 | 8.07 | 7.83 | 7.81 | 7.49 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Payables turnover = Cost of goods sold ÷ Accounts payable
= 40,199 ÷ 7,675 = 5.24
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 2022 to 2023 but then slightly decreased from 2023 to 2024. |
Working Capital Turnover
Caterpillar Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 45,682) | 46,949) | 43,785) | 43,455) | 39,464) | |
| Less: Current liabilities | 32,272) | 34,728) | 31,531) | 29,847) | 25,717) | |
| Working capital | 13,410) | 12,221) | 12,254) | 13,608) | 13,747) | |
| Sales of Machinery, Energy & Transportation | 61,363) | 63,869) | 56,574) | 48,188) | 39,022) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 4.58 | 5.23 | 4.62 | 3.54 | 2.84 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Boeing Co. | 2.15 | 5.78 | 3.42 | 2.34 | 1.69 | |
| Eaton Corp. plc | 6.31 | 5.91 | 8.70 | 65.65 | 5.42 | |
| GE Aerospace | 10.83 | 7.24 | 7.93 | 4.94 | 2.26 | |
| Honeywell International Inc. | 5.79 | 7.39 | 7.03 | 5.86 | 3.64 | |
| Lockheed Martin Corp. | 29.25 | 18.85 | 12.93 | 11.52 | 12.01 | |
| RTX Corp. | — | 41.62 | 20.15 | 9.75 | 7.52 | |
| Working Capital Turnover, Sector | ||||||
| Capital Goods | 6.28 | 8.26 | 6.79 | 5.01 | 3.24 | |
| Working Capital Turnover, Industry | ||||||
| Industrials | 10.82 | 13.27 | 10.34 | 6.90 | 4.52 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Working capital turnover = Sales of Machinery, Energy & Transportation ÷ Working capital
= 61,363 ÷ 13,410 = 4.58
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 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Average Inventory Processing Period
Caterpillar Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 2.39 | 2.58 | 2.54 | 2.53 | 2.55 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 153 | 141 | 144 | 144 | 143 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Boeing Co. | 466 | 415 | 452 | 486 | 467 | |
| Eaton Corp. plc | 100 | 92 | 90 | 82 | 62 | |
| GE Aerospace | 147 | 120 | 114 | 107 | 96 | |
| Honeywell International Inc. | 99 | 98 | 90 | 85 | 74 | |
| Lockheed Martin Corp. | 20 | 19 | 20 | 19 | 23 | |
| RTX Corp. | 71 | 76 | 73 | 65 | 71 | |
| Average Inventory Processing Period, Sector | ||||||
| Capital Goods | 171 | 159 | 160 | 160 | 160 | |
| Average Inventory Processing Period, Industry | ||||||
| Industrials | 90 | 86 | 85 | 91 | 99 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.39 = 153
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. number of days of inventory outstanding improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Average Receivable Collection Period
Caterpillar Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 6.61 | 6.86 | 6.39 | 5.68 | 5.33 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 55 | 53 | 57 | 64 | 68 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Boeing Co. | 14 | 12 | 14 | 15 | 12 | |
| Eaton Corp. plc | 68 | 70 | 72 | 61 | 59 | |
| GE Aerospace | 97 | 87 | 89 | 80 | 83 | |
| Honeywell International Inc. | 74 | 75 | 77 | 72 | 76 | |
| Lockheed Martin Corp. | 12 | 12 | 14 | 11 | 11 | |
| RTX Corp. | 50 | 57 | 50 | 55 | 60 | |
| Average Receivable Collection Period, Sector | ||||||
| Capital Goods | 45 | 48 | 50 | 48 | 50 | |
| Average Receivable Collection Period, Industry | ||||||
| Industrials | 40 | 42 | 45 | 47 | 48 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.61 = 55
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, comparison to benchmarks
No. days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 153 | 141 | 144 | 144 | 143 | |
| Average receivable collection period | 55 | 53 | 57 | 64 | 68 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 208 | 194 | 201 | 208 | 211 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Boeing Co. | 480 | 427 | 466 | 501 | 479 | |
| Eaton Corp. plc | 168 | 162 | 162 | 143 | 121 | |
| GE Aerospace | 244 | 207 | 203 | 187 | 179 | |
| Honeywell International Inc. | 173 | 173 | 167 | 157 | 150 | |
| Lockheed Martin Corp. | 32 | 31 | 34 | 30 | 34 | |
| RTX Corp. | 121 | 133 | 123 | 120 | 131 | |
| Operating Cycle, Sector | ||||||
| Capital Goods | 216 | 207 | 210 | 208 | 210 | |
| Operating Cycle, Industry | ||||||
| Industrials | 130 | 128 | 130 | 138 | 147 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 153 + 55 = 208
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 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Average Payables Payment Period
Caterpillar Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 5.24 | 5.41 | 4.76 | 4.36 | 4.75 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 70 | 67 | 77 | 84 | 77 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Boeing Co. | 61 | 62 | 59 | 57 | 74 | |
| Eaton Corp. plc | 87 | 83 | 81 | 77 | 58 | |
| GE Aerospace | 119 | 112 | 123 | 110 | 100 | |
| Honeywell International Inc. | 105 | 109 | 103 | 107 | 95 | |
| Lockheed Martin Corp. | 13 | 14 | 13 | 5 | 6 | |
| RTX Corp. | 72 | 69 | 68 | 62 | 66 | |
| Average Payables Payment Period, Sector | ||||||
| Capital Goods | 64 | 67 | 70 | 65 | 66 | |
| Average Payables Payment Period, Industry | ||||||
| Industrials | 42 | 45 | 47 | 47 | 49 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.24 = 70
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 2022 to 2023 but then slightly increased from 2023 to 2024. |
Cash Conversion Cycle
Caterpillar Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 153 | 141 | 144 | 144 | 143 | |
| Average receivable collection period | 55 | 53 | 57 | 64 | 68 | |
| Average payables payment period | 70 | 67 | 77 | 84 | 77 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 138 | 127 | 124 | 124 | 134 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Boeing Co. | 419 | 365 | 407 | 444 | 405 | |
| Eaton Corp. plc | 81 | 79 | 81 | 66 | 63 | |
| GE Aerospace | 125 | 95 | 80 | 77 | 79 | |
| Honeywell International Inc. | 68 | 64 | 64 | 50 | 55 | |
| Lockheed Martin Corp. | 19 | 17 | 21 | 25 | 28 | |
| RTX Corp. | 49 | 64 | 55 | 58 | 65 | |
| Cash Conversion Cycle, Sector | ||||||
| Capital Goods | 152 | 140 | 140 | 143 | 144 | |
| Cash Conversion Cycle, Industry | ||||||
| Industrials | 88 | 83 | 83 | 91 | 98 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 153 + 55 – 70 = 138
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. cash conversion cycle deteriorated from 2022 to 2023 and from 2023 to 2024. |