Caterpillar Inc.
Supplier Financial Health Report
Overview
June 2024
USA
Incorporated Country
113,200
Number of Employees
A+
Credit Rating
6
Count of Investments
Five-Year Financial Trend Analysis for Caterpillar Inc.
CONSTANT
Credit Trend
6527.30%
Total Balance Sheet Growth Rate
-97.85%
Total Debt Growth Rate
Caterpillar's financial health is further strengthened by its credit rating of A+ and a credit score of 97, which is considered excellent. The credit trend has remained constant, indicating a stable financial position. The company has had four exits, suggesting a flexible approach to investments and divestments.
The company's net income has also shown a substantial increase, rising from $161.11M in 2015 to $10.33B in 2023, representing a 6,313.05% change. However, the EBITDA trend has shown a decrease, dropping from $11.71B in 2018 to $13.47M in 2022, indicating a challenging period for the company in recent years.
Caterpillar's revenue is diversified, with significant contributions coming from countries such as Canada (7.08%), China (3.30%), Japan (3.23%), India (2.74%), Brazil (2.46%), Mexico (1.97%), South Korea (1.60%), and Australia (1.58%). Germany and Italy each account for 1.48% and 1.33% of the company's revenue, respectively.
Despite the impressive revenue growth, the company's net operating cash flow has decreased significantly, dropping from $6.7B in 2016 to $13.37M in 2022, representing a 92.91% change. This trend, along with the decrease in EBITDA, may indicate operational challenges that the company is facing.
In conclusion, Caterpillar Inc. has shown impressive revenue growth over the past five years, but recent trends in net operating cash flow and EBITDA suggest operational challenges. The company's strong credit rating and excellent credit score, however, indicate a stable financial position. The diversified revenue base, with significant contributions from various countries, further strengthens the company's financial health.
Financial Health Risk Assessment for Caterpillar Inc.
LOW
Credit Risk
LOW
Bankruptcy Risk
MEDIUM
Financial Health Risk
However, recent trends indicate operational challenges for the company. The net income has significantly increased, rising from $161.11M in 2015 to $10.33B in 2023, representing a 6,313.05% change. However, the EBITDA trend has shown a decrease, dropping from $11.71B in 2018 to $13.47M in 2022. Additionally, the net operating cash flow has decreased significantly, dropping from $6.7B in 2016 to $13.37M in 2022, representing a 92.91% change.
The company's revenue is diversified, with significant contributions coming from various countries such as Canada, China, Japan, India, Brazil, Mexico, South Korea, and Australia. The financial analysis also reveals some areas for improvement. The current ratio and quick ratio are lower than the industry average, indicating that the company may have difficulty meeting short-term obligations. The return on assets is below the industry average, suggesting that the company is not efficiently using its assets to generate earnings.
While the company's strong credit rating and excellent credit score indicate a stable financial position, these operational challenges could impact the company's ability to meet its financial obligations in the future. It is essential to keep a close eye on these areas and consider potential solutions to improve operational efficiency and cash flow.
List of UEIs for Caterpillar Inc.
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