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Caterpillar (NYSE:CAT) 3-Year ROIIC %

: -65.46% (As of Dec. 2021)
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3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year. Caterpillar's 3-Year ROIIC % for the quarter that ended in Dec. 2021 was -65.46%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Caterpillar's 3-Year ROIIC % or its related term are showing as below:

CAT's 3-Year ROIIC % is ranked worse than
88.72% of 195 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 6.51 vs CAT: -65.46

Caterpillar (NYSE:CAT) 3-Year ROIIC % Competitive Comparison

For the Farm & Heavy Construction Machinery subindustry, Caterpillar's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 (NYSE:CAT) 3-Year ROIIC % Distribution

For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Caterpillar's 3-Year ROIIC % falls into.



Caterpillar 3-Year ROIIC % Calculation

Caterpillar's 3-Year ROIIC % for the quarter that ended in is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)/3-Year Incremental Invested Capital
=( 5417.8006 (Dec. 2021) - 6492.5897 (Dec. 2018) )/( 58791 (Dec. 2021) - 57149 (Dec. 2018) )
=-1074.7891/1642
=-65.46 %

* 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.

Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.


Caterpillar  (NYSE:CAT) 3-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


Caterpillar 3-Year ROIIC % Related Terms

Thank you for viewing the detailed overview of Caterpillar's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Caterpillar (NYSE:CAT) Business Description

Caterpillar logo
Address
510 Lake Cook Road, Suite 100, Deerfield, IL, USA, 60015
Caterpillar is an iconic manufacturer of heavy equipment, power solutions, and locomotives. It is currently the world's largest manufacturer of heavy equipment with over 13% market share in 2021. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Caterpillar Financial Services. Its products are available through a dealer network that covers the globe with over 2,000 branches maintained by 168 dealers. Caterpillar Financial Services provides retail financing for machinery and engines to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Caterpillar product sales.
Executives
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

Caterpillar (NYSE:CAT) Headlines

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