Caterpillar Interest Coverage Trend from 2010 to 2022

CAT
 Stock
  

USD 185.39  1.75  0.95%   

Caterpillar Interest Coverage yearly trend continues to be comparatively stable with very little volatility. Interest Coverage will likely drop to 6.39 in 2022. From the period from 2010 to 2022, Caterpillar Interest Coverage quarterly data regression had r-value of 0.24 and coefficient of variation of  37.25. Caterpillar Direct Expenses is comparatively stable at the moment as compared to the past year. Caterpillar reported Direct Expenses of 35.51 Billion in 2021. Interest Expense is likely to gain to about 529.6 M in 2022, whereas Earning Before Interest and Taxes EBIT is likely to drop slightly above 7.9 B in 2022.
  
Check Caterpillar financial statements over time to gain insight into future company performance. You can evaluate financial statements to find patterns among Caterpillar main balance sheet or income statement drivers, such as Direct Expenses of 39.6 B, Consolidated Income of 5.6 B or Cost of Revenue of 34.6 B, as well as many exotic indicators such as Interest Coverage of 6.39, Long Term Debt to Equity of 1.82 or Calculated Tax Rate of 27.71. Caterpillar financial statements analysis is a perfect complement when working with Caterpillar Valuation or Volatility modules. It can also supplement Caterpillar's financial leverage analysis and stock options assessment as well as various Caterpillar Technical models . Continue to the analysis of Caterpillar Correlation against competitors.

Caterpillar Interest Coverage Breakdown

Showing smoothed Interest Coverage of Caterpillar with missing and latest data points interpolated. Caterpillar's Interest Coverage historical data analysis aims to capture in quantitative terms the overall pattern of either growth or decline in Caterpillar's overall financial position and show how it may be relating to other accounts over time.
Interest Coverage10 Years Trend
Increasing
Stable
   Interest Coverage   
Share
       Timeline  

Caterpillar Interest Coverage Regression Statistics

Arithmetic Mean 5.53
Geometric Mean 4.98
Coefficient Of Variation 37.25
Mean Deviation 1.64
Median 5.37
Standard Deviation 2.06
Sample Variance 4.24
Range 7.01
R-Value 0.24
Mean Square Error 4.35
R-Squared 0.06
Significance 0.42
Slope 0.13
Total Sum of Squares 50.88

Caterpillar Interest Coverage History

2012 7.41
2013 5.33
2014 5.37
2015 3.51
2016 0.99
2017 4.29
2018 8.01
2019 7.7
2020 4.66
2021 7.78
2022 6.39

About Caterpillar Financial Statements

There are typically three primary documents that fall into the category of financial statements. These documents include Caterpillar income statement, its balance sheet, and the statement of cash flows. Caterpillar investors use historical funamental indicators, such as Caterpillar's Interest Coverage, to determine how well the company is positioned to perform in the future. Although Caterpillar investors may use each financial statement separately, they are all related. The changes in Caterpillar's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Caterpillar's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. We offer a historical overview of the basic patterns found on Caterpillar Financial Statements. Understanding these patterns can help to make the right decision on long term investment in Caterpillar. Please read more on our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Interest Coverage 7.78  6.39 
Earnings Before Interest Taxes and Depreciation Amortization EBITDA11.1 B10.8 B
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide. The company was founded in 1925 and is headquartered in Deerfield, Illinois. Caterpillar operates under Farm Heavy Construction Machinery classification in the United States and is traded on New York Stock Exchange. It employs 107700 people.

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 estimate score, the more favorable is the investor's outlook on Caterpillar.

Caterpillar Implied Volatility

    
  30.85  
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

0.84DEDeere Company Fiscal Year End 23rd of November 2022 PairCorr
0.79HYFMHydrofarm Holdings Earnings Call  TomorrowPairCorr
0.79MNTXManitex Intl Earnings Call  TomorrowPairCorr

Moving against Caterpillar

0.61ACFNAcorn Energy Earnings Call  TodayPairCorr
0.6ACTGAcacia Res-Acacia Earnings Call  This WeekPairCorr
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.
Pair CorrelationCorrelation Matching
Continue to the analysis of Caterpillar Correlation against competitors. 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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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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.
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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
0.22
Market Capitalization
97.9 B
Quarterly Revenue Growth YOY
0.11
Return On Assets
0.0636
Return On Equity
0.41
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.