CAT Debt-to-Equity Ratio Analysis
Updated 1233h ago·SEC filings & market data
Key Takeaway
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.
Sector Performance
88th percentileCAT
2.31x
Sector Median
0.74x
Sector Avg
2.51x
Prior Period
0.00x(May 2026)
Deep Analysis
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.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about CAT?
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
How is the Debt-to-Equity Ratio calculated?
Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.
Who are CAT's closest peers by Debt-to-Equity Ratio?
The closest peers by Debt-to-Equity Ratio include: TAP (0.76x), PCAR (0.72x), O (0.78x), PRU (0.78x), KIM (0.85x).
Learn More About Debt-to-Equity Ratio
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Debt/Equity Ratio: How Much Debt Is Too Much?
The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.
The Formula
Total Debt / Shareholders' Equity
Why It Matters
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
Master CAT's Valuation
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2.31x
Sector Median
0.74x
Sector Avg
2.51x
How CAT's Debt-to-Equity Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.