Foreign Rate Differential
Caterpillar Foreign Rate Differential remained flat by 0.0% to $46.50M in Q4 2024 compared to the prior quarter. Year-over-year, this metric grew by 44.2%, from $32.25M to $46.50M. Over 3 years (FY 2021 to FY 2024), Foreign Rate Differential shows a downward trend with a -6.0% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
A negative differential suggests lower average tax rates abroad, which can improve net margins, while a positive differential indicates higher foreign tax burdens.
Detailed definition
Quantifies the difference between the domestic statutory corporate tax rate and the weighted average tax rates applicabl...
Peer comparison
Standard metric for multinational insurance and financial services firms with global operations.
tmo_foreign_rate_differentialHistorical Data
| FY'21 | FY'22 | FY'23 | FY'24 | |
|---|---|---|---|---|
| Value | $224.00M | $184.00M | $129.00M | $186.00M |
| YoY Change | — | -17.9% | -29.9% | +44.2% |
Foreign Rate Differential at Other Companies
Frequently Asked Questions
- What is Caterpillar's foreign rate differential?
- Caterpillar (CAT) reported foreign rate differential of $46.50M in Q4 2024.
- How has Caterpillar's foreign rate differential changed year-over-year?
- Caterpillar's foreign rate differential increased by 44.2% year-over-year, from $32.25M to $46.50M.
- What is the long-term trend for Caterpillar's foreign rate differential?
- Over 3 years (2021 to 2024), Caterpillar's foreign rate differential has grown at a -6.0% compound annual growth rate (CAGR), from $224.00M to $186.00M.
- What does foreign rate differential mean?
- The tax rate advantage or disadvantage of operating in foreign countries versus the home country.