Caterpillar Stock Current Ratio
| CAT Stock | USD 363.52 0.27 0.07% |
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.
| Last Reported | Projected for Next Year | ||
| Current Ratio | 1.35 | 1.52 |
Caterpillar | Current Ratio |
Caterpillar Company Current Ratio Analysis
Caterpillar's Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Current Caterpillar Current Ratio | 1.41 X |
Most of Caterpillar's fundamental indicators, such as Current Ratio, 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 Current Ratio 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 Caterpillar Stock properly, considering its historical fundamentals such as Current Ratio. 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.
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Caterpillar Current Ratio 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 current ratio 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 current ratio as a starting point in their analysis.
Caterpillar Current Ratio |
| Timeline |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
| Competition |
Caterpillar Price To Sales Ratio
Price To Sales Ratio |
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In accordance with the recently published financial statements, Caterpillar has a Current Ratio of 1.41 times. This is 31.55% lower than that of the Machinery sector and significantly higher than that of the Industrials industry. The current ratio for all United States stocks is 34.72% higher than that of the company.
Caterpillar Current Ratio 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 Current Ratio 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 current ratio category among related companies.
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 | 0.58 | |||
| Return On Asset | 0.1 | |||
| Profit Margin | 0.15 % | |||
| Operating Margin | 0.19 % | |||
| Current Valuation | 209.04 B | |||
| Shares Outstanding | 499.38 M | |||
| Shares Owned By Insiders | 0.20 % | |||
| Shares Owned By Institutions | 72.46 % | |||
| Number Of Shares Shorted | 13.06 M | |||
| Price To Earning | 17.15 X | |||
| Price To Book | 9.37 X | |||
| Price To Sales | 2.72 X | |||
| Revenue | 67.06 B | |||
| Gross Profit | 15.56 B | |||
| EBITDA | 15.97 B | |||
| Net Income | 10.34 B | |||
| Cash And Equivalents | 7 B | |||
| Cash Per Share | 14.27 X | |||
| Total Debt | 38.45 B | |||
| Debt To Equity | 2.34 % | |||
| Current Ratio | 1.41 X | |||
| Book Value Per Share | 39.04 X | |||
| Cash Flow From Operations | 12.88 B | |||
| Short Ratio | 6.16 X | |||
| Earnings Per Share | 20.12 X | |||
| Price To Earnings To Growth | 2.10 X | |||
| Target Price | 326.74 | |||
| Number Of Employees | 113.2 K | |||
| Beta | 1.16 | |||
| Market Capitalization | 181.4 B | |||
| Total Asset | 87.48 B | |||
| Retained Earnings | 51.25 B | |||
| Working Capital | 12.22 B | |||
| Current Asset | 34.42 B | |||
| Current Liabilities | 26.3 B | |||
| Annual Yield | 0.01 % | |||
| Five Year Return | 2.42 % | |||
| Net Asset | 87.48 B | |||
| Last Dividend Paid | 5.1 |
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.
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
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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.Check out Caterpillar Piotroski F Score and Caterpillar Altman Z Score analysis. 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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 20.12 | 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.