Caterpillar Free Cash Flow vs Invested Capital Analysis

CAT Stock

USD 363.91 1.72 0.47%

Caterpillar financial indicator trend analysis is way more than just evaluating Caterpillar prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Caterpillar is a good investment. Please check the relationship between Caterpillar Free Cash Flow and its Invested Capital accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Caterpillar. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.

For more information on how to buy Caterpillar Stock please use our How to Invest in Caterpillar guide.

Free Cash Flow vs Invested Capital

Free Cash Flow vs Invested Capital Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Caterpillar Free Cash Flow account and Invested Capital. At this time, the significance of the direction appears to have pay attention.

The correlation between Caterpillar's Free Cash Flow and Invested Capital is -0.77. Overlapping area represents the amount of variation of Free Cash Flow that can explain the historical movement of Invested Capital in the same time period over historical financial statements of Caterpillar, assuming nothing else is changed. The correlation between historical values of Caterpillar's Free Cash Flow and Invested Capital is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Free Cash Flow of Caterpillar are associated (or correlated) with its Invested Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Invested Capital has no effect on the direction of Free Cash Flow i.e., Caterpillar's Free Cash Flow and Invested Capital go up and down completely randomly.

Correlation Coefficient

-0.77

Relationship Direction	Negative
Relationship Strength	Weak

View All Relationships

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Invested Capital

Invested capital represents the total cash investment that shareholders and debt holders have contributed to Caterpillar. There are two different methods for calculating Caterpillar invested capital: operating approach and financing approach. Understanding Caterpillar invested capital allows investors to calculate measures of performance such as return on invested capital or return on capital employed.

Most indicators from Caterpillar's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Caterpillar current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Caterpillar. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.

For more information on how to buy Caterpillar Stock please use our How to Invest in Caterpillar guide.Enterprise Value is likely to gain to about 29.4 B in 2024, whereas Selling General Administrative is likely to drop slightly above 3.8 B in 2024.

	2021	2022	2023	2024 (projected)
Gross Profit	15.0B	17.5B	23.5B	24.6B
Total Revenue	51.0B	59.4B	67.1B	35.3B

Gross Profit Total Revenue

Caterpillar fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Shares Outstanding	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Property Plant And Equipment Gross	Total Current Assets	Short Term Debt	Intangible Assets	Property Plant Equipment	Accounts Payable	Common Stock Total Equity
Total Assets		0.99	0.59	0.97	0.7	0.77	0.98	0.52	0.63	0.97	0.4	0.63	0.98	-0.57	0.97	0.66	0.16	-0.43	1.0	0.34	0.97	0.93	0.52	0.77	0.83	0.8
Short Long Term Debt Total	0.99		0.57	0.95	0.69	0.75	0.98	0.52	0.7	0.97	0.37	0.7	0.96	-0.61	0.98	0.61	0.13	-0.46	0.99	0.33	0.94	0.96	0.49	0.76	0.76	0.81
Other Current Liab	0.59	0.57		0.67	0.83	0.33	0.58	0.95	0.61	0.48	-0.09	0.61	0.67	-0.77	0.5	0.91	0.52	-0.87	0.58	0.81	0.65	0.56	-0.07	0.34	0.68	0.69
Total Current Liabilities	0.97	0.95	0.67		0.68	0.66	0.94	0.6	0.62	0.9	0.25	0.62	0.97	-0.67	0.91	0.71	0.31	-0.55	0.97	0.39	0.98	0.92	0.37	0.67	0.89	0.87
Total Stockholder Equity	0.7	0.69	0.83	0.68		0.63	0.71	0.85	0.6	0.66	0.28	0.6	0.71	-0.59	0.61	0.85	0.25	-0.66	0.66	0.78	0.69	0.65	0.21	0.63	0.59	0.6
Property Plant And Equipment Net	0.77	0.75	0.33	0.66	0.63		0.83	0.31	0.22	0.83	0.79	0.22	0.72	-0.16	0.77	0.49	-0.04	-0.09	0.74	0.36	0.65	0.66	0.73	1.0	0.46	0.37
Net Debt	0.98	0.98	0.58	0.94	0.71	0.83		0.51	0.57	0.98	0.48	0.57	0.96	-0.53	0.97	0.66	0.14	-0.4	0.98	0.39	0.92	0.93	0.59	0.83	0.76	0.73
Retained Earnings	0.52	0.52	0.95	0.6	0.85	0.31	0.51		0.66	0.4	-0.15	0.66	0.59	-0.84	0.41	0.87	0.55	-0.94	0.5	0.8	0.61	0.53	-0.22	0.32	0.58	0.71
Cash	0.63	0.7	0.61	0.62	0.6	0.22	0.57	0.66		0.56	-0.19	1.0	0.64	-0.84	0.62	0.45	0.18	-0.73	0.63	0.33	0.66	0.7	-0.13	0.22	0.47	0.81
Non Current Assets Total	0.97	0.97	0.48	0.9	0.66	0.83	0.98	0.4	0.56		0.54	0.56	0.92	-0.44	0.98	0.55	0.01	-0.29	0.97	0.32	0.87	0.92	0.67	0.83	0.7	0.67
Non Currrent Assets Other	0.4	0.37	-0.09	0.25	0.28	0.79	0.48	-0.15	-0.19	0.54		-0.19	0.32	0.38	0.47	0.14	-0.37	0.42	0.38	0.02	0.24	0.24	0.86	0.77	0.17	-0.16
Cash And Short Term Investments	0.63	0.7	0.61	0.62	0.6	0.22	0.57	0.66	1.0	0.56	-0.19		0.64	-0.84	0.62	0.45	0.18	-0.73	0.63	0.33	0.66	0.7	-0.13	0.22	0.47	0.81
Net Receivables	0.98	0.96	0.67	0.97	0.71	0.72	0.96	0.59	0.64	0.92	0.32	0.64		-0.62	0.95	0.73	0.23	-0.51	0.98	0.38	0.98	0.89	0.45	0.72	0.87	0.82
Common Stock Shares Outstanding	-0.57	-0.61	-0.77	-0.67	-0.59	-0.16	-0.53	-0.84	-0.84	-0.44	0.38	-0.84	-0.62		-0.48	-0.6	-0.55	0.95	-0.58	-0.5	-0.67	-0.68	0.34	-0.17	-0.57	-0.91
Non Current Liabilities Total	0.97	0.98	0.5	0.91	0.61	0.77	0.97	0.41	0.62	0.98	0.47	0.62	0.95	-0.48		0.58	0.04	-0.32	0.98	0.25	0.9	0.9	0.62	0.77	0.74	0.7
Inventory	0.66	0.61	0.91	0.71	0.85	0.49	0.66	0.87	0.45	0.55	0.14	0.45	0.73	-0.6	0.58		0.53	-0.71	0.65	0.71	0.72	0.54	0.14	0.49	0.78	0.59
Other Current Assets	0.16	0.13	0.52	0.31	0.25	-0.04	0.14	0.55	0.18	0.01	-0.37	0.18	0.23	-0.55	0.04	0.53		-0.62	0.16	0.19	0.3	0.13	-0.4	-0.04	0.48	0.42
Other Stockholder Equity	-0.43	-0.46	-0.87	-0.55	-0.66	-0.09	-0.4	-0.94	-0.73	-0.29	0.42	-0.73	-0.51	0.95	-0.32	-0.71	-0.62		-0.43	-0.64	-0.56	-0.51	0.44	-0.1	-0.52	-0.79
Total Liab	1.0	0.99	0.58	0.97	0.66	0.74	0.98	0.5	0.63	0.97	0.38	0.63	0.98	-0.58	0.98	0.65	0.16	-0.43		0.32	0.96	0.93	0.53	0.75	0.82	0.79
Property Plant And Equipment Gross	0.34	0.33	0.81	0.39	0.78	0.36	0.39	0.8	0.33	0.32	0.02	0.33	0.38	-0.5	0.25	0.71	0.19	-0.64	0.32		0.34	0.4	-0.01	0.37	0.27	0.38
Total Current Assets	0.97	0.94	0.65	0.98	0.69	0.65	0.92	0.61	0.66	0.87	0.24	0.66	0.98	-0.67	0.9	0.72	0.3	-0.56	0.96	0.34		0.87	0.33	0.66	0.91	0.88
Short Term Debt	0.93	0.96	0.56	0.92	0.65	0.66	0.93	0.53	0.7	0.92	0.24	0.7	0.89	-0.68	0.9	0.54	0.13	-0.51	0.93	0.4	0.87		0.38	0.67	0.65	0.84
Intangible Assets	0.52	0.49	-0.07	0.37	0.21	0.73	0.59	-0.22	-0.13	0.67	0.86	-0.13	0.45	0.34	0.62	0.14	-0.4	0.44	0.53	-0.01	0.33	0.38		0.72	0.26	-0.08
Property Plant Equipment	0.77	0.76	0.34	0.67	0.63	1.0	0.83	0.32	0.22	0.83	0.77	0.22	0.72	-0.17	0.77	0.49	-0.04	-0.1	0.75	0.37	0.66	0.67	0.72		0.47	0.38
Accounts Payable	0.83	0.76	0.68	0.89	0.59	0.46	0.76	0.58	0.47	0.7	0.17	0.47	0.87	-0.57	0.74	0.78	0.48	-0.52	0.82	0.27	0.91	0.65	0.26	0.47		0.75
Common Stock Total Equity	0.8	0.81	0.69	0.87	0.6	0.37	0.73	0.71	0.81	0.67	-0.16	0.81	0.82	-0.91	0.7	0.59	0.42	-0.79	0.79	0.38	0.88	0.84	-0.08	0.38	0.75

Click cells to compare fundamentals

Caterpillar Account Relationship Matchups

Caterpillar fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	78.5B	78.3B	82.8B	81.9B	87.5B	50.5B
Short Long Term Debt Total	37.7B	37.2B	37.8B	37.0B	38.5B	23.8B
Other Current Liab	8.1B	7.3B	8.9B	9.7B	11.3B	11.9B
Total Current Liabilities	26.6B	25.7B	29.8B	31.5B	34.7B	17.8B
Total Stockholder Equity	14.6B	15.3B	16.5B	15.9B	19.5B	20.5B
Property Plant And Equipment Net	12.9B	12.4B	8.2B	12.0B	13.2B	9.1B
Net Debt	29.4B	27.8B	28.5B	30.0B	31.5B	20.6B
Retained Earnings	34.4B	35.2B	39.3B	43.5B	51.3B	53.8B
Cash	8.3B	9.4B	9.3B	7.0B	7.0B	7.3B
Non Current Assets Total	39.3B	38.9B	39.3B	38.2B	40.5B	26.5B
Non Currrent Assets Other	3.3B	3.8B	4.1B	1.3B	830M	788.5M
Cash And Short Term Investments	8.3B	9.4B	9.3B	7.0B	7.0B	7.3B
Net Receivables	17.9B	16.8B	17.4B	17.9B	19.1B	12.0B
Common Stock Shares Outstanding	567.5M	548.6M	548.5M	530.4M	513.6M	568.7M
Liabilities And Stockholders Equity	78.5B	78.3B	82.8B	81.9B	87.5B	50.5B
Non Current Liabilities Total	37.2B	37.2B	36.4B	34.5B	33.2B	23.1B
Inventory	11.3B	11.4B	14.0B	16.3B	16.6B	17.4B
Other Current Assets	1.7B	1.9B	2.8B	11.7B	4.3B	4.6B
Other Stockholder Equity	(24.2B)	(25.2B)	(27.6B)	(31.7B)	(36.3B)	(34.5B)
Total Liab	63.8B	62.9B	66.3B	66.1B	68.0B	40.8B
Property Plant And Equipment Gross	12.9B	12.4B	12.1B	12.0B	28.6B	30.1B
Total Current Assets	39.2B	39.5B	43.5B	43.8B	46.9B	24.0B
Accumulated Other Comprehensive Income	(1.6B)	(888M)	(1.6B)	(2.5B)	(1.8B)	(1.9B)
Short Term Debt	11.4B	11.2B	11.8B	11.3B	13.6B	7.6B
Intangible Assets	1.6B	1.3B	1.0B	758M	564M	535.8M
Property Plant Equipment	12.9B	12.4B	8.2B	12.0B	13.8B	9.0B
Accounts Payable	6.0B	6.1B	8.2B	8.7B	7.9B	4.8B
Common Stock Total Equity	5.9B	6.2B	6.4B	6.6B	7.5B	4.1B
Common Stock	5.9B	6.2B	6.4B	6.6B	6.4B	4.2B
Other Liab	10.5B	11.2B	10.4B	8.4B	9.6B	9.8B
Other Assets	3.9B	18.8B	7.2B	6.8B	7.8B	4.4B
Long Term Debt	26.3B	26.0B	26.0B	25.7B	24.5B	21.9B
Treasury Stock	(24.2B)	(25.2B)	(27.6B)	(31.7B)	(28.6B)	(27.1B)
Current Deferred Revenue	1.2B	1.1B	1.1B	1.9B	1.9B	1.3B
Good Will	6.2B	6.4B	6.3B	5.3B	5.3B	4.9B
Short Term Investments	0.0	9.4B	964M	1.9B	2.2B	2.3B
Net Tangible Assets	6.8B	7.6B	9.1B	9.8B	11.3B	7.5B

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 market does not have solid backing from leading economists and market statisticians.

Investor biases related to Caterpillar's public news can be used to forecast risks associated with an 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 equities 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

36.72

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 against Caterpillar Stock

0.92	GP	GreenPower Motor Financial Report 12th of July 2024	Pair Corr
0.85	LNN	Lindsay Financial Report 4th of July 2024	Pair Corr
0.84	LEV	Lion Electric Corp Financial Report 14th of May 2024	Pair Corr
0.83	TWI	Titan International Financial Report 1st of May 2024	Pair Corr
0.79	ZEVYW	Lightning eMotors	Pair Corr

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 instruments. 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 Correlation Correlation Matching

When determining whether Caterpillar is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Caterpillar Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Caterpillar Stock. Highlighted below are key reports to facilitate an investment decision about Caterpillar Stock:

How To Invest In Caterpillar

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Is Caterpillar Stock a good investment?

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What is Caterpillar's Net Worth?

Details

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Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Caterpillar. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.

For more information on how to buy Caterpillar Stock please use our How to Invest in Caterpillar guide.

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 the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

Complementary Tools for Caterpillar Stock analysis

When running Caterpillar's 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 the 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

0.893

Dividend Share

5.1

Earnings Share

20.11

Revenue Per Share

131.336

Quarterly Revenue Growth

0.029

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 if Caterpillar is a good investment 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.

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Caterpillar Free Cash Flow vs Invested Capital Analysis

Free Cash Flow vs Invested Capital

Free Cash Flow vs Invested Capital Correlation Analysis

Correlation Coefficient

Free Cash Flow

Invested Capital

Caterpillar fundamental ratios Correlations

Caterpillar Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Caterpillar fundamental ratios Accounts

Caterpillar Investors Sentiment

Caterpillar Implied Volatility

Pair Trading with Caterpillar

Moving against Caterpillar Stock

Complementary Tools for Caterpillar Stock analysis

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Total Liab	+ 1.0	Total Assets
Property Plant Equipment	+ 1.0	Property Plant And Equipment Net
Cash And Short Term Investments	+ 1.0	Cash
Short Long Term Debt Total	+ 0.99	Total Assets
Total Liab	+ 0.99	Short Long Term Debt Total
Net Debt	+ 0.98	Total Assets

Other Stockholder Equity	- 0.94	Retained Earnings
Common Stock Total Equity	- 0.91	Common Stock Shares Outstanding
Other Stockholder Equity	- 0.87	Other Current Liab
Common Stock Shares Outstanding	- 0.84	Cash And Short Term Investments
Common Stock Shares Outstanding	- 0.84	Cash
Common Stock Shares Outstanding	- 0.84	Retained Earnings