Caterpillar Inc (CAT) is a leading global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company's financial statements provide a comprehensive view of its financial performance and position. The income statement reveals Caterpillar's revenue, expenses, and net income from stockholders. In the latest fiscal year, the company reported total revenue of $53.8 billion. Gross profit, which represents revenue minus the cost of goods sold, was $14.3 billion. Net income from stockholders, after subtracting expenses and taxes, amounted to $6.1 billion. EBIT and EBITDA, which stand for earnings before interest and taxes, and earnings before interest, taxes, depreciation, and amortization, respectively, provide a measure of operating profitability. Caterpillar's EBIT and EBITDA for the year were $7.4 billion and $8.7 billion, respectively.
Looking at Caterpillar's balance sheet, we can see its financial position at a specific point in time. Total assets, which include cash equivalents, investments, property, and equipment, were worth $73.7 billion. Total liabilities, encompassing debts and obligations, amounted to $52.6 billion. Stockholders' equity, the residual interest in the assets after deducting liabilities, stood at $21.1 billion. Net debt, a measure of a company's ability to repay its debts, was $42.6 billion. Cash equivalents, including cash and short-term investments easily convertible to cash, were valued at $8.4 billion.
Cash flow statements provide insights into a company's liquidity and cash management. Operating cash flow, which measures the cash generated from the company's core operations, was $11.4 billion. Investing cash flow reveals the cash used for acquiring or selling long-term assets, such as property or equipment. In the case of Caterpillar, it was a cash outflow of $5.3 billion. Financing cash flow represents the funds raised or spent on activities like issuing or repurchasing stocks or paying dividends. Caterpillar had a net cash outflow of $6.8 billion in financing activities. Finally, free cash flow, calculated as operating cash flow minus capital expenditures, amounted to $6.1 billion, indicating the company's ability to generate cash for debt repayment, dividends, or investment in growth opportunities.
