What does tax law change related to currency translation mean?

This captures the impact of changes in tax laws specifically related to currency translation adjustments on the company's tax provision. It reflects the volatility introduced by fluctuating exchange rates on tax-deferred assets or liabilities denominated in foreign currencies.

Caterpillar CAT Tax law change related to currency translation

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Other financials

Income statement

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Revenue$17.4B+22.2%

Gross profit$6.1B+15.6%

Operating income$3.1B+19.6%

Net income$2.5B+27.2%

EPS (diluted)$5.47+30.2%

Balance sheet

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Cash & equivalents$4.1B+14.3%

Total debt$36.9B+14.2%

Total equity$21.3B+9.4%

Total assets$95.6B+12.4%

Cash flow

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Operating cash flow$1.9B+45.1%

CapEx$728.0M+2.5%

Free cash flow$1.1B+97.2%

Valuation

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Market cap$372.68B+80.9%

P/E39.5×+17.7×

P/S5.3×+2.0×

Profitability

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Gross margin96.6%-4.4pp

Operating margin16.5%-2.7pp

Net margin13.3%-2.4pp

FCF margin13.4%-0.9pp

Returns & leverage

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Return on equity43.5%-11.8pp

Debt / equity1.7×+0.1×

Current ratio1.4×0.0×

Where this comes from

Reported directly by Caterpillar in its filing.

Tagged under the XBRL concept cat:EffectiveIncomeTaxRateReconciliationTaxLawChangeCurrencyTranslationAmount.

The official record: Caterpillar’s 10-K, filed February 13, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Caterpillar's tax law change related to currency translation?: Caterpillar (CAT) reported tax law change related to currency translation of $56M in Q4 2024.
What does tax law change related to currency translation mean?: This captures the impact of changes in tax laws specifically related to currency translation adjustments on the company's tax provision. It reflects the volatility introduced by fluctuating exchange rates on tax-deferred assets or liabilities denominated in foreign currencies.