CaterpillarXSWX:CAT +1.14%83 Interest Coverage is 23.02 as of Mar. 2026, which is 16% above its 10-year median of 19.81. GuruFocus rates XSWX:CAT with a GF Score™ of 83/100 and a GF Value™ of CHF339.83. The stock has 6 warning signs investors should review. Among 169 Farm & Heavy Construction Machinery companies, Caterpillar ranks better than 69.23% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Caterpillar's
Operating Income
for the
three
months ended in Mar. 2026 was CHF2,429 Mil. Caterpillar's Interest Expense for the
three
months ended in Mar. 2026 was CHF-105 Mil.
Caterpillar's interest coverage for the quarter that ended in Mar. 2026 was 23.02.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Caterpillar's Interest Coverage or its related term are showing as below:
XSWX:CAT'
s Interest Coverage Range Over the Past 10 Years
Min: 3.48 Med: 19.81 Max: 25.53
Current: 22.42
XSWX:CAT's Interest Coverage is ranked better than 69.23% of 169
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.32
vs XSWX:CAT: 22.42
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Caterpillar Interest Coverage Related Terms
Caterpillar Interest Coverage Historical Data
* Premium members only.
The historical data trend for Caterpillar's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
XSWX:CAT vs DE, PCAR, CNH: Interest Coverage Comparison
For the Farm & Heavy Construction Machinery subindustry, Caterpillar's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Caterpillar's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (XSWX:CAT) has a Interest Coverage of 23.02 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Caterpillar and its competitors. This is 16% above median its historical median of 19.81. Over the past decade, Caterpillar's Interest Coverage has ranged from 3.48 to 25.53. According to the industry distribution chart, Caterpillar ranks #52 out of 169 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 30.8%.
Is Caterpillar's Interest Coverage too high?
Caterpillar's current Interest Coverage of 23.02 is 16% above median its 10-year median of 19.81. Over the past 10 years, this metric has ranged from a low of 3.48 to a high of 25.53. The Farm & Heavy Construction Machinery industry median Interest Coverage is 9.32. Caterpillar's value of 23.02 is 147% above this industry median. Based on the distribution chart, Caterpillar ranks #52 out of 169 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Caterpillar has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Caterpillar's Interest Coverage compare to DE and PCAR?
According to the Farm & Heavy Construction Machinery industry distribution chart, Caterpillar ranks #52 out of 169 companies for Interest Coverage. This puts Caterpillar in the upper half of its industry. The industry median Interest Coverage is 9.32. Caterpillar's value of 23.02 is 147% above this benchmark. Historically, Caterpillar's own Interest Coverage has ranged from 3.48 to 25.53 over the past decade. While the company's 10-year median is 19.81 vs. the industry median of 9.32, Caterpillar has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Farm & Heavy Construction Machinery company?
The median Interest Coverage among Farm & Heavy Construction Machinery companies is 9.32, based on 169 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Caterpillar's current Interest Coverage of 23.02 is 147% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Caterpillar and its competitors. For the Farm & Heavy Construction Machinery industry, the median Interest Coverage is 9.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Caterpillar's current Interest Coverage is 23.02, which is 16% above median its own 10-year median of 19.81. 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?
Caterpillar (XSWX:CAT) has a current Interest Coverage of 23.02. The stock's GF Value™ is CHF339.83, compared to a current price of CHF809.34 — trading 138.2% above its estimated fair value. The current Interest Coverage is 23.02, which is 16% above median its 10-year median of 19.81 and 147% above the Farm & Heavy Construction Machinery industry median of 9.32. Caterpillar's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Caterpillar (XSWX:CAT), the current Interest Coverage is 23.02 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 (XSWX:CAT) Overvalued in 2026?
Based on GuruFocus' analysis, Caterpillar stock appears to be overvalued.
The current stock price of CHF809.34 is trading 138.2% above its estimated GF Value™ of CHF339.83.
Key valuation signals for XSWX:CAT:
Interest Coverage: 23.02 (16% above median its 10-year median of 19.81)
GF Value™: CHF339.83 vs. price of CHF809.34 (138.2% above fair value)
Industry Position: 147% above the Farm & Heavy Construction Machinery median (#52 of 169)
No single metric tells the full story. See the XSWX: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.
83GF Score
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