Effective Tax Rate, Continuing Operations
Caterpillar Effective Tax Rate, Continuing Operations remained flat by 0.0% to $0.06 in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 21.8%, from $0.05 to $0.06. Over 4 years (FY 2021 to FY 2025), Effective Tax Rate, Continuing Operations shows an upward trend with a 3.1% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
A lower rate generally indicates higher tax efficiency, while a significantly higher rate may suggest increased tax liabilities or geographic shifts in profitability.
Detailed definition
The ratio of income tax expense to income from continuing operations before taxes, representing the actual percentage of...
Peer comparison
Standard metric across all public companies; peers in the industrial gas sector typically target rates aligned with their geographic footprint.
cat_effective_tax_rate_continuing_operationsHistorical Data
| FY'21 | FY'22 | FY'23 | FY'24 | FY'25 | |
|---|---|---|---|---|---|
| Value | $0.21 | $0.24 | $0.21 | $0.20 | $0.24 |
| YoY Change | — | +11.3% | -9.7% | -7.5% | +21.8% |
Effective Tax Rate, Continuing Operations at Other Companies
Frequently Asked Questions
- What is Caterpillar's effective tax rate, continuing operations?
- Caterpillar (CAT) reported effective tax rate, continuing operations of $0.06 in Q4 2025.
- How has Caterpillar's effective tax rate, continuing operations changed year-over-year?
- Caterpillar's effective tax rate, continuing operations increased by 21.8% year-over-year, from $0.05 to $0.06.
- What is the long-term trend for Caterpillar's effective tax rate, continuing operations?
- Over 4 years (2021 to 2025), Caterpillar's effective tax rate, continuing operations has grown at a 3.1% compound annual growth rate (CAGR), from $0.21 to $0.24.
- What does effective tax rate, continuing operations mean?
- The actual percentage of pre-tax income paid in taxes from continuing business operations.