CATCAUTIOUS

CAT Return on Equity (ROE) Analysis

51.3%

Updated 264h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' money—a 51.3% ROE means CAT earns $51.30 for every $100 of equity, well above typical returns.

Sector Performance

91th percentile

CAT

51.3%

Sector Median

13.9%

Sector Avg

32.1%

Prior Period

41.6%(Apr 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' money—a 51.3% ROE means CAT earns $51.30 for every $100 of equity, well above typical returns.

Compared to sector peers, CAT’s ROE ranks in the 91st percentile, far exceeding the sector median of 13.8%. However, the trend data for both year-over-year and quarter-over-quarter changes is not available (listed as N/A), so no direction can be inferred from past movement. Without a trend, the extremely high current level suggests CAT is currently very profitable relative to its equity base, but the lack of historical context introduces uncertainty about sustainability. This high ROE alone might seem attractive, but it does not contradict the overall CAUTIOUS verdict because a single metric cannot offset broader concerns, and the absence of trend data prevents confirmation of consistent performance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about CAT?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are CAT's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: WDC (85.9%), LVS (90.5%), IT (94.9%), KLAC (95.0%), ITW (96.8%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.