# Caterpillar Return On Asset

CAT | Stock | ## USD 236.41 1.29 0.55% |

Caterpillar fundamentals help investors to digest information that contributes to Caterpillar's financial success or failures. It also enables traders to predict the movement of Caterpillar Stock. The fundamental analysis module provides a way to measure Caterpillar's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Caterpillar stock.

This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools. Caterpillar | Return On Asset |

**B**in 2022. Tangible Asset Value is likely to drop to about 69.9

**B**in 2022.

## Caterpillar Return On Asset Analysis

Caterpillar's Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.## Current Caterpillar Return On Asset | 6.95 % |

Most of Caterpillar's fundamental indicators, such as Return On Asset, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Caterpillar is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

## Caterpillar Return On Asset Driver Correlations

Understanding the fundamental principles of building solid financial models for Caterpillar is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Return On Asset. Since Caterpillar's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Caterpillar's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Caterpillar's interrelated accounts and indicators.

**Click cells**to compare fundamentals

## Caterpillar Return On Asset Historical Pattern

Today, most investors in Caterpillar Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Caterpillar's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on asset growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Caterpillar return on asset as a starting point in their analysis.

Caterpillar Return On Asset |

Share

Timeline |

Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Compare to competition |

## Caterpillar Total Assets

## Total Assets | ## 77 Billion |

Based on the latest financial disclosure, Caterpillar has a Return On Asset of 6.95%. This is 1462.75% lower than that of the Industrials sector and significantly higher than that of the Farm & Heavy Construction Machinery industry. The return on asset for all United States stocks is notably lower than that of the firm.

## Caterpillar Return On Asset Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Caterpillar's direct or indirect competition against its Return On Asset to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Caterpillar could also be used in its relative valuation, which is a method of valuing Caterpillar by comparing valuation metrics of similar companies.Caterpillar is currently under evaluation in return on asset category among related companies.

## Caterpillar Current Valuation Drivers

We derive many important indicators used in calculating different scores of Caterpillar from analyzing Caterpillar's financial statements. These drivers represent accounts that assess Caterpillar's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Caterpillar's important valuation drivers and their relationship over time.

2017 | 2018 | 2019 | 2020 | 2021 | 2022 (projected) | ||

Net Income Per Employee | 7.66 K | 59.11 K | 59.56 K | 30.73 K | 60.25 K | 65.01 K | |

Revenue Per Employee | 462.01 K | 526.17 K | 525.9 K | 427.89 K | 473.27 K | 446.13 K | |

Average Assets | 77.9 B | 78.43 B | 78.59 B | 76.88 B | 81.5 B | 76.81 B | |

Earnings Before Interest Taxes and Depreciation Amortization EBITDA | 7.81 B | 11.38 B | 11.24 B | 7.22 B | 11.2 B | 9.64 B | |

Earnings Before Interest Taxes and Depreciation Amortization USD | 7.5 B | 11.02 B | 10.84 B | 6.95 B | 11.07 B | 10.8 B | |

Earnings before Tax | 4.09 B | 7.84 B | 7.84 B | 4 B | 8.23 B | 7.42 B | |

Average Equity | 14.3 B | 15.05 B | 14.99 B | 14.6 B | 16.68 B | 15.46 B | |

Enterprise Value | 120.08 B | 102.75 B | 111.62 B | 127.69 B | 139.17 B | 132.18 B | |

Free Cash Flow | 4.53 B | 4.58 B | 5.4 B | 4.98 B | 5.99 B | 5.84 B | |

Invested Capital | 68.34 B | 70.87 B | 73.44 B | 72.72 B | 74.11 B | 70.3 B | |

Invested Capital Average | 69.58 B | 70.5 B | 72.7 B | 72.73 B | 73.9 B | 70.24 B | |

Market Capitalization | 93.75 B | 74.98 B | 81.62 B | 98.88 B | 111.83 B | 100.19 B | |

Tangible Asset Value | 68.65 B | 70.39 B | 70.69 B | 70.62 B | 75.43 B | 69.86 B | |

Working Capital | 9.31 B | 10.38 B | 12.57 B | 13.75 B | 13.61 B | 13.32 B |

## Caterpillar ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Caterpillar's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Caterpillar's managers, analysts, and investors.Environment Score | Governance Score | Social Score |

## Caterpillar Fundamentals

Return On Equity | 45.61 % | |||

Return On Asset | 6.95 % | |||

Profit Margin | 13.02 % | |||

Operating Margin | 19.69 % | |||

Current Valuation | 151.79 B | |||

Shares Outstanding | 520.41 M | |||

Shares Owned by Insiders | 0.22 % | |||

Shares Owned by Institutions | 70.78 % | |||

Number of Shares Shorted | 8 M | |||

Price to Earning | 17.15 X | |||

Price to Book | 7.87 X | |||

Price to Sales | 2.17 X | |||

Revenue | 56.63 B | |||

Gross Profit | 13.19 B | |||

EBITDA | 11.15 B | |||

Net Income | 7.37 B | |||

Cash and Equivalents | 7.42 B | |||

Cash per Share | 14.27 X | |||

Total Debt | 36.52 B | |||

Debt to Equity | 2.34 % | |||

Current Ratio | 1.41 X | |||

Book Value Per Share | 29.96 X | |||

Cash Flow from Operations | 6.44 B | |||

Short Ratio | 2.13 X | |||

Earnings Per Share | 13.74 X | |||

Price to Earnings To Growth | 1.32 X | |||

Number of Employees | 107.7 K | |||

Beta | 1.12 | |||

Market Capitalization | 122.66 B | |||

Total Asset | 78.5 B | |||

Retained Earnings | 34.41 B | |||

Working Capital | 8.12 B | |||

Current Asset | 34.42 B | |||

Current Liabilities | 26.3 B | |||

Z Score | 1.8 | |||

Five Year Return | 2.42 % | |||

Last Dividend Paid | 1.2 |

## About Caterpillar Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Caterpillar's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Caterpillar using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Caterpillar based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.Last Reported | Projected for 2022 | ||

Average Assets | 81.5 B | 76.8 B | |

Tangible Asset Value | 75.4 B | 69.9 B |

## Caterpillar Investors Sentiment

The influence of Caterpillar's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Caterpillar. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Investor biases related to Caterpillar's public news can be used to forecast risks associated with investment in Caterpillar. The trend in average sentiment can be used to explain how an investor holding Caterpillar can time the market purely based on public headlines and social activities around Caterpillar. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.

Caterpillar's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Caterpillar's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Caterpillar's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Caterpillar.

## Caterpillar Implied Volatility | 42.1 |

Caterpillar's implied volatility exposes the market's sentiment of Caterpillar stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Caterpillar's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Caterpillar stock will not fluctuate a lot when Caterpillar's options are near their expiration.

Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Caterpillar in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Caterpillar's short interest history, or implied volatility extrapolated from Caterpillar options trading.

## Pair Trading with Caterpillar

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Caterpillar position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Caterpillar will appreciate offsetting losses from the drop in the long position's value.### Moving together with Caterpillar

### Moving against Caterpillar

- | 0.56 | FFHL | Fuwei Films Holding | Earnings Call Tomorrow | PairCorr |

The ability to find closely correlated positions to Caterpillar could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Caterpillar when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Caterpillar - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Caterpillar to buy it.

The correlation of Caterpillar is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Caterpillar moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Caterpillar moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Caterpillar can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Continue to Caterpillar Piotroski F Score and Caterpillar Altman Z Score analysis. Note that the Caterpillar information on this page should be used as a complementary analysis to other Caterpillar's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

## Complementary Tools for Caterpillar Stock analysis

When running Caterpillar price analysis, check to measure Caterpillar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Caterpillar is operating at the current time. Most of Caterpillar's value examination focuses on studying past and present price action to predict the probability of Caterpillar's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Caterpillar's price. Additionally, you may evaluate how the addition of Caterpillar to your portfolios can decrease your overall portfolio volatility.

Stock TickersUse high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | Go | |

Equity AnalysisResearch over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | Go | |

Portfolio ManagerState of the art Portfolio Manager to monitor and improve performance of your invested capital | Go | |

Analyst RecommendationsAnalyst recommendations and target price estimates broken down by several categories | Go | |

Analyst RecommendationsAnalyst recommendations and target price estimates broken down by several categories | Go | |

Equity AnalysisResearch over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | Go | |

Options AnalysisAnalyze and evaluate options and option chains as a potential hedge for your portfolios | Go |

Is Caterpillar's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Caterpillar. If investors know Caterpillar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Caterpillar listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth YOY 0.49 | Market Capitalization 120.9 B | Quarterly Revenue Growth YOY 0.21 | Return On Assets 0.0695 | Return On Equity 0.46 |

The market value of Caterpillar is measured differently than its book value, which is the value of Caterpillar that is recorded on the company's balance sheet. Investors also form their own opinion of Caterpillar's value that differs from its market value or its book value, called intrinsic value, which is Caterpillar's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Caterpillar's market value can be influenced by many factors that don't directly affect Caterpillar's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Caterpillar's value and its price as these two are different measures arrived at by different means. Investors typically determine Caterpillar value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Caterpillar's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.