Market Cap : 97.87 B | Enterprise Value : 128.82 B | PE Ratio : 14.83 | PB Ratio : 6.22 |
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Caterpillar's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2022 was $6,692 Mil. Caterpillar's average Total Stockholders Equity over the quarter that ended in Jun. 2022 was $16,396 Mil. Therefore, Caterpillar's annualized ROE % for the quarter that ended in Jun. 2022 was 40.81%.
The historical rank and industry rank for Caterpillar's ROE % or its related term are showing as below:
During the past 13 years, Caterpillar's highest ROE % was 44.33%. The lowest was -0.48%. And the median was 19.90%.
The historical data trend for Caterpillar's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Farm & Heavy Construction Machinery subindustry, Caterpillar's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's ROE % distribution charts can be found below:
* The bar in red indicates where Caterpillar's ROE % falls into.
Caterpillar's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as
ROE % | = | Net Income attributable to Common Stockholders (A: Dec. 2021 ) | / | ( (Total Stockholders Equity (A: Dec. 2020 ) | + | Total Stockholders Equity (A: Dec. 2021 )) | / count ) |
= | 6489 | / | ( (15331 | + | 16484) | / 2 ) | |
= | 6489 | / | 15907.5 | ||||
= | 40.79 % |
Caterpillar's annualized ROE % for the quarter that ended in Jun. 2022 is calculated as
ROE % | = | Net Income attributable to Common Stockholders (Q: Jun. 2022 ) | / | ( (Total Stockholders Equity (Q: Mar. 2022 ) | + | Total Stockholders Equity (Q: Jun. 2022 )) | / count ) |
= | 6692 | / | ( (17065 | + | 15727) | / 2 ) | |
= | 6692 | / | 16396 | ||||
= | 40.81 % |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
ROE %** | (Q: Jun. 2022 ) | ||||
= | Net Income | / | Total Stockholders Equity | ||
= | 6692 | / | 16396 | ||
= | (Net Income / Revenue ) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (6692 / 56988) | * | (56988 / 81691.5) | * | (81691.5 / 16396) |
= | Net Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 11.74 % | * | 0.6976 | * | 4.9824 |
= | ROA % | * | Equity Multiplier | ||
= | 8.19 % | * | 4.9824 | ||
= | 40.81 % |
With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.
The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:
ROE %** | (Q: Jun. 2022 ) | ||||||||
= | Net Income | / | Total Stockholders Equity | ||||||
= | 6692 | / | 16396 | ||||||
= | (Net Income /Pre-Tax Income) | * | (Pre-Tax Income/Operating Income) | * | (Operating Income/Revenue) | * | (Revenue/Total Assets) | * | (Total Assets/Total Stockholders Equity) |
= | (6692 / 8384) | * | (8384 / 7776) | * | (7776 / 56988) | * | (56988 / 81691.5) | * | (81691.5 / 16396) |
= | Tax Burden | * | Interest Burden | * | Operating Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 0.7982 | * | 1.0782 | * | 13.64 % | * | 0.6976 | * | 4.9824 |
= | 40.81 % |
Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.
Net income attributable to common stockholders is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Thank you for viewing the detailed overview of Caterpillar's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
Schaupp William E | officer: Chief Accounting Officer | PPG INDUSTRIES, INC. ONE PPG PLACE PITTSBURGH PA 15272 |
Maclennan David | director | 14701 CHARLSON ROAD EDEN PRAIRIE MN 55347 |
Johnson Gerald | director | 300 RENAISSANCE CENTER M/C: 482-C23-A68 DETROIT MI 48265 |
Fassino Anthony D. | officer: Group President | 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015 |
Marvel Gary Michael | officer: Chief Accounting Officer | 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015 |
Ainsworth William P | officer: Group President | 510 LAKE COOK ROAD SUITE 100 DEERFIELD X1 60015 |
Bonfield Andrew R J | officer: Chief Financial Officer | C/O BRISTOL MYERS SQUIBB CO 345 PARK AVE NEW YORK NY 10164 |
Younessi Ramin | officer: Group President | 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015 |
Creed Joseph E | officer: Interim CFO | 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015 |
Ayotte Kelly | director | C/O NEWS CORPORATION 1211 AVENUE OF THE AMERICAS NEW YORK NY 10036 |
Johnson Cheryl H | officer: Chief Human Resources Officer | 40 WESTMINSTER STREET PROVIDENCE RI 02903 |
Wilkins Rayford Jr | director | 208 S. AKARD ST. -- DALLAS TX 75202 |
Long Suzette M | officer: Int. Executive Vice President | 510 LAKE COOK ROAD SUITE 100 DEERFILED IL 60015 |
De Lange Bob | officer: Group President | 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015 |
Johnson Denise C | officer: Group President | C/O CATERPILLAR, INCORPORATED 901 WEST WASHINGTON, CV41110 EAST PEORIA IL 61630 |
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