Aureus
AExcellent

Caterpillar, Inc.(CAT)

A

Financial data as of Dec 31, 2025Improving · Industrials

FCF Margin11.0%Free Cash Flow / Revenue
Cash Conversion132.1%Operating CF / Net Income
Free Cash Flow$7.5B
Revenue$67.6B
Net Cash-$33.4BNet debt position
Debt / FCF5.8xElevated debt burden
Current Ratio1.44Adequate short-term liquidity
YoY FCF Growth+120.8%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseB
→
+1Strong YoY FCF growth (120.8% YoY)
→
+0.25Solid revenue growth (22.2% YoY)
→
FinalA

Analysis Summary

Strengths

  • Healthy FCF margin (11.0%)
  • Excellent cash conversion (132%)
  • Strong YoY FCF growth (+120.8%)
  • Strong revenue growth (22.2% YoY)

Concerns

  • Heavy debt position ($33.4B net debt, 5.8x FCF)
  • High debt-to-FCF ratio (5.8x)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin11.0%
Net Margin13.1%
Operating CF Margin17.4%
CapEx Ratio6.3%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$33.4BNet debt position
Debt / FCF5.8xElevated debt burden
Current Ratio1.44Adequate liquidity
Debt / Equity2.03High leverage

Quarterly FCF Trend

+120.8% YoYImproving (+120.8%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameCaterpillar, Inc.
SectorIndustrials
Free Cash Flow$7.5B
Revenue$67.6B
Net Income$8.9B
Operating Cash Flow$11.7B
Capital Expenditure$4.3B
FCF Margin11.0%
Cash Conversion Rate132.1%
Net Margin13.1%
Total Debt$43.3B
Total Cash$10.0B
Net Cash-$33.4B
Current Ratio1.44
Debt / Equity2.03
Debt / FCF5.8x
YoY FCF Growth+120.8%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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