Current Assets

Inventory LIFO Reserve

Caterpillar Inventory LIFO Reserve increased by 11.4% to $4.31B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 11.4%, from $3.86B to $4.31B. Over 5 years (FY 2020 to FY 2025), Inventory LIFO Reserve shows an upward trend with a 15.1% CAGR.

Analysis

StatementBalance Sheet Statement
SectionCurrent Assets
CategoryEfficiency
SignalContext dependent
VolatilityStable
First reportedQ4 2014
Last reportedQ4 2025Feb 13, 2026

How to read this metric

A growing reserve typically indicates rising costs of raw materials over time.

Detailed definition

This is the difference between the cost of inventory calculated under the LIFO method and the cost under the FIFO or ave...

Peer comparison

Only applicable to companies using LIFO; peers using FIFO will not have this metric.

Metric ID: inventory_lifo_reserve

Historical Data

5 periods
 Q4 '21Q4 '22Q4 '23Q4 '24Q4 '25
Value$2.60B$3.32B$3.42B$3.86B$4.31B
QoQ Change—+27.8%+3.1%+12.9%+11.4%
YoY Change—+27.8%+3.1%+12.9%+11.4%
Range$2.60B – $4.31B
CAGR+65.6%
Avg YoY Growth+13.8%
Median YoY Growth+12.1%
Current Streak4+ quarters growth

Inventory LIFO Reserve at Other Companies

IR
Ingersoll RandIRView metric

Frequently Asked Questions

What is Caterpillar's inventory lifo reserve?
Caterpillar (CAT) reported inventory lifo reserve of $4.31B in Q4 2025.
How has Caterpillar's inventory lifo reserve changed year-over-year?
Caterpillar's inventory lifo reserve increased by 11.4% year-over-year, from $3.86B to $4.31B.
What is the long-term trend for Caterpillar's inventory lifo reserve?
Over 5 years (2020 to 2025), Caterpillar's inventory lifo reserve has grown at a 15.1% compound annual growth rate (CAGR), from $2.13B to $4.31B.
What does inventory lifo reserve mean?
The difference between inventory value under LIFO and FIFO accounting methods.