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Caterpillar CAT Return on invested capital

Return on invested capital at other companies

Cummins logo
CumminsCMI
22.9%-4.3pp
Wells Fargo & Company logo
Wells Fargo & CompanyWFC
20.5%-0.7pp
Deere & Company logo
Deere & CompanyDE
9.2%-1.8pp
Wabtec logo
WabtecWAB
8.7%-0.3pp
United Rentals logo
United RentalsURI
12.1%-0.9pp
Quanta Services logo
Quanta ServicesPWR
9.9%-0.2pp

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 assets$95.6B+12.5%

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$440.29B+109%
P/E46.7×+25.5×
P/S6.2×+2.9×

Profitability

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Gross margin96.6%-4.4pp
Operating margin16.5%-2.7pp
Net margin13.3%-2.4pp

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

Calculated from Caterpillar’s reported figures.

Based on trailing twelve months.

The official record: Caterpillar’s 10-Q, filed May 6, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Caterpillar's return on invested capital?
Caterpillar (CAT) reported return on invested capital of 18.2% in Q4 2025.
How has Caterpillar's return on invested capital changed year-over-year?
Caterpillar's return on invested capital decreased by 24.5% year-over-year, from 24.1% to 18.2%.
What does return on invested capital mean?
The after-tax return the business earns on all the capital — debt and equity — invested in it.
How do you interpret return on invested capital?
The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.
How does return on invested capital compare across companies?
Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.