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 in inventory value between LIFO and FIFO accounting methods.

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

VolatilityModerate

First reportedQ4 2014

Last reportedQ4 2025Feb 13, 2026

How to read this metric

An increasing reserve indicates rising input costs or inflation, while a decreasing reserve may suggest inventory liquidation or deflationary trends.

Detailed definition

The LIFO reserve is the difference between the cost of inventory calculated under the FIFO or average cost method and th...

Peer comparison

Standard disclosure for companies using LIFO; essential for normalizing inventory metrics across different accounting standards.

Metric ID: inventory_lifo_reserve

Historical Data

5 periods

	Q4 '21	Q4 '22	Q4 '23	Q4 '24	Q4 '25
Value	$2.6B	$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$2.6B – $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

Ingersoll RandIR View 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 in inventory value between LIFO and FIFO accounting methods.