Debt-to-Equity Ratio

The Debt-to-Equity Ratio of 2.31x means the company uses $2.31 of debt for every $1.00 of shareholder equity, indicating a high reliance on borrowed funds.

This is well above the sector median of 0.73x, placing CAT in the 88th percentile among its peers, meaning only 12% of companies carry more debt relative to equity. No year-over-year or quarter-over-quarter change is available (both N/A), and the trend direction over the last eight quarters is also N/A, with the only two historical values showing a jump from 0.00x to the current 2.31x. The combination of a very high current debt level and the absence of trend data suggests elevated financial risk, as the company has taken on substantial leverage without a clear trajectory. This metric directly supports the overall CAUTIOUS verdict, as extreme leverage increases vulnerability to rising interest rates or earnings downturns.

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