Caterpillar's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 113.86.
Caterpillar's Days Inventory for the
three
months ended in Mar. 2026 was 147.87.
Caterpillar's Days Payable for the
three
months ended in Mar. 2026 was 72.87.
Therefore, Caterpillar's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 188.86.
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Caterpillar Cash Conversion Cycle Related Terms
Caterpillar Cash Conversion Cycle Historical Data
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The historical data trend for Caterpillar's Cash Conversion Cycle 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.
LIM:CAT vs DE, PCAR, CNH: Cash Conversion Cycle Comparison
For the Farm & Heavy Construction Machinery subindustry, Caterpillar's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle 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.
Caterpillar Cash Conversion Cycle vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Caterpillar's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Caterpillar's Cash Conversion Cycle for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Caterpillar (LIM:CAT) has a Cash Conversion Cycle of 188.86 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Caterpillar and its competitors.
Is Caterpillar's Cash Conversion Cycle too high?
Caterpillar's current Cash Conversion Cycle is 188.86. The Farm & Heavy Construction Machinery industry median Cash Conversion Cycle is 126.73. Caterpillar's value of 188.86 is 49% above this industry median. Overall, Caterpillar has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Caterpillar's Cash Conversion Cycle compare to DE and PCAR?
Caterpillar's Cash Conversion Cycle of 188.86 can be compared against companies in the Farm & Heavy Construction Machinery industry. The industry median Cash Conversion Cycle is 126.73. Caterpillar's value of 188.86 is 49% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Farm & Heavy Construction Machinery company?
The median Cash Conversion Cycle among Farm & Heavy Construction Machinery companies is 126.73, based on 210 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Caterpillar's current Cash Conversion Cycle of 188.86 is 49% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Caterpillar and its competitors. For the Farm & Heavy Construction Machinery industry, the median Cash Conversion Cycle is 126.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Caterpillar's current Cash Conversion Cycle is 188.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Caterpillar stock overvalued right now?
Based on GuruFocus' analysis, Caterpillar (LIM:CAT) is currently considered Significantly Overvalued. The stock's GF Value™ is $417.22, compared to a current price of $996.00 — trading 138.7% above its estimated fair value. The current Cash Conversion Cycle is 188.86 and 49% above the Farm & Heavy Construction Machinery industry median of 126.73. Caterpillar's overall GF Score™ is 68/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Caterpillar (LIM:CAT), the current Cash Conversion Cycle is 188.86 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Caterpillar (LIM:CAT) Overvalued in 2026?
Based on GuruFocus' analysis, Caterpillar stock appears to be overvalued.
The current stock price of $996.00 is trading 138.7% above its estimated GF Value™ of $417.22.
GuruFocus considers Caterpillar to be Significantly Overvalued.
Key valuation signals for LIM:CAT:
Cash Conversion Cycle: 188.86
GF Value™: $417.22 vs. price of $996.00 (138.7% above fair value)
Industry Position: 49% above the Farm & Heavy Construction Machinery median
No single metric tells the full story. See the LIM:CAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its reporting segments are construction, resource, energy, and transportation. Market share approaches 20% across many products. Caterpillar operates a captive finance subsidiary to facilitate sales. The firm has a global reach that is approximately evenly balanced between the US and the rest of the world. Construction skews more domestic, while the other divisions are more geographically diversified. An independent network of over 150 dealers operates approximately 2,800 facilities, giving Caterpillar reach into about 190 countries for sales and support services.
68GF Score
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