Caterpillar Net Income vs Capital Expenditures Analysis

Caterpillar financial indicator trend analysis is way more than just evaluating Caterpillar prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Caterpillar is a good investment. Please check the relationship between Caterpillar Net Income and its Capital Expenditures accounts. Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.

Net Income vs Capital Expenditures

Net Income vs Capital Expenditures Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Caterpillar Net Income account and Capital Expenditures. At this time, the significance of the direction appears to have almost no relationship.

The correlation between Caterpillar's Net Income and Capital Expenditures is 0.17. Overlapping area represents the amount of variation of Net Income that can explain the historical movement of Capital Expenditures in the same time period over historical financial statements of Caterpillar, assuming nothing else is changed. The correlation between historical values of Caterpillar's Net Income and Capital Expenditures is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Net Income of Caterpillar are associated (or correlated) with its Capital Expenditures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Capital Expenditures has no effect on the direction of Net Income i.e., Caterpillar's Net Income and Capital Expenditures go up and down completely randomly.

Correlation Coefficient

0.17

Relationship Direction	Positive
Relationship Strength	Insignificant

View All Relationships

Net Income

Net income is one of the most important fundamental items in finance. It plays a large role in Caterpillar financial statement analysis. It represents the amount of money remaining after all of Caterpillar operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.

Capital Expenditures

Capital Expenditures are funds used by Caterpillar to acquire physical assets such as property, industrial buildings or equipment. This type of outlay is used by management to increase the scope of Caterpillar operations. These expenditures can include everything from repairing an office equipment, building a brand new facility, or writing new software.

Most indicators from Caterpillar's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Caterpillar current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. Enterprise Value is likely to gain to about 29.4 B in 2024, whereas Selling General Administrative is likely to drop slightly above 3.8 B in 2024.

	2021	2022	2023	2024 (projected)
Gross Profit	15.0B	17.5B	23.3B	24.4B
Total Revenue	51.0B	59.4B	67.1B	35.3B

Gross Profit Total Revenue

Caterpillar fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Shares Outstanding	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Property Plant And Equipment Gross	Total Current Assets	Short Term Debt	Intangible Assets	Property Plant Equipment	Accounts Payable	Common Stock Total Equity
Total Assets		0.99	0.59	0.97	0.7	0.76	0.98	0.52	0.63	0.97	0.41	0.63	0.98	-0.57	0.97	0.66	0.15	-0.43	1.0	0.34	0.97	0.93	0.52	0.77	0.83	0.8
Short Long Term Debt Total	0.99		0.57	0.95	0.69	0.75	0.98	0.52	0.7	0.97	0.37	0.7	0.97	-0.61	0.98	0.61	0.13	-0.46	0.99	0.33	0.94	0.96	0.49	0.76	0.76	0.81
Other Current Liab	0.59	0.57		0.67	0.83	0.32	0.58	0.95	0.61	0.48	-0.02	0.61	0.66	-0.77	0.5	0.91	0.81	-0.87	0.58	0.81	0.65	0.56	-0.07	0.34	0.68	0.69
Total Current Liabilities	0.97	0.95	0.67		0.68	0.65	0.94	0.6	0.62	0.9	0.26	0.62	0.97	-0.67	0.91	0.71	0.29	-0.55	0.97	0.39	0.98	0.92	0.37	0.67	0.89	0.87
Total Stockholder Equity	0.7	0.69	0.83	0.68		0.62	0.71	0.85	0.6	0.66	0.34	0.6	0.71	-0.59	0.61	0.85	0.5	-0.66	0.66	0.78	0.69	0.65	0.21	0.63	0.59	0.6
Property Plant And Equipment Net	0.76	0.75	0.32	0.65	0.62		0.83	0.29	0.22	0.83	0.81	0.22	0.71	-0.15	0.78	0.48	-0.11	-0.07	0.74	0.34	0.64	0.65	0.75	1.0	0.46	0.35
Net Debt	0.98	0.98	0.58	0.94	0.71	0.83		0.51	0.57	0.98	0.49	0.57	0.96	-0.53	0.97	0.66	0.14	-0.4	0.98	0.39	0.92	0.93	0.59	0.83	0.76	0.73
Retained Earnings	0.52	0.52	0.95	0.6	0.85	0.29	0.51		0.66	0.4	-0.08	0.66	0.58	-0.84	0.41	0.87	0.8	-0.94	0.5	0.8	0.61	0.54	-0.22	0.32	0.58	0.71
Cash	0.63	0.7	0.61	0.62	0.6	0.22	0.57	0.66		0.56	-0.19	1.0	0.64	-0.84	0.62	0.45	0.32	-0.73	0.63	0.33	0.66	0.71	-0.13	0.22	0.47	0.81
Non Current Assets Total	0.97	0.97	0.48	0.9	0.66	0.83	0.98	0.4	0.56		0.53	0.56	0.92	-0.44	0.98	0.55	0.02	-0.29	0.97	0.32	0.87	0.92	0.67	0.83	0.7	0.67
Non Currrent Assets Other	0.41	0.37	-0.02	0.26	0.34	0.81	0.49	-0.08	-0.19	0.53		-0.19	0.33	0.35	0.46	0.2	-0.35	0.36	0.38	0.12	0.25	0.24	0.84	0.79	0.18	-0.14
Cash And Short Term Investments	0.63	0.7	0.61	0.62	0.6	0.22	0.57	0.66	1.0	0.56	-0.19		0.64	-0.84	0.62	0.45	0.32	-0.73	0.63	0.33	0.66	0.71	-0.13	0.22	0.47	0.81
Net Receivables	0.98	0.97	0.66	0.97	0.71	0.71	0.96	0.58	0.64	0.92	0.33	0.64		-0.62	0.95	0.73	0.24	-0.51	0.98	0.38	0.98	0.89	0.46	0.72	0.87	0.82
Common Stock Shares Outstanding	-0.57	-0.61	-0.77	-0.67	-0.59	-0.15	-0.53	-0.84	-0.84	-0.44	0.35	-0.84	-0.62		-0.48	-0.6	-0.67	0.95	-0.58	-0.5	-0.67	-0.68	0.34	-0.17	-0.57	-0.91
Non Current Liabilities Total	0.97	0.98	0.5	0.91	0.61	0.78	0.97	0.41	0.62	0.98	0.46	0.62	0.95	-0.48		0.58	0.04	-0.32	0.98	0.25	0.9	0.9	0.62	0.77	0.74	0.7
Inventory	0.66	0.61	0.91	0.71	0.85	0.48	0.66	0.87	0.45	0.55	0.2	0.45	0.73	-0.6	0.58		0.68	-0.71	0.65	0.71	0.72	0.54	0.14	0.49	0.78	0.59
Other Current Assets	0.15	0.13	0.81	0.29	0.5	-0.11	0.14	0.8	0.32	0.02	-0.35	0.32	0.24	-0.67	0.04	0.68		-0.82	0.15	0.76	0.26	0.2	-0.42	-0.08	0.37	0.46
Other Stockholder Equity	-0.43	-0.46	-0.87	-0.55	-0.66	-0.07	-0.4	-0.94	-0.73	-0.29	0.36	-0.73	-0.51	0.95	-0.32	-0.71	-0.82		-0.43	-0.64	-0.56	-0.51	0.44	-0.1	-0.52	-0.79
Total Liab	1.0	0.99	0.58	0.97	0.66	0.74	0.98	0.5	0.63	0.97	0.38	0.63	0.98	-0.58	0.98	0.65	0.15	-0.43		0.32	0.96	0.93	0.53	0.75	0.82	0.79
Property Plant And Equipment Gross	0.34	0.33	0.81	0.39	0.78	0.34	0.39	0.8	0.33	0.32	0.12	0.33	0.38	-0.5	0.25	0.71	0.76	-0.64	0.32		0.34	0.4	-0.01	0.37	0.27	0.38
Total Current Assets	0.97	0.94	0.65	0.98	0.69	0.64	0.92	0.61	0.66	0.87	0.25	0.66	0.98	-0.67	0.9	0.72	0.26	-0.56	0.96	0.34		0.88	0.33	0.66	0.91	0.88
Short Term Debt	0.93	0.96	0.56	0.92	0.65	0.65	0.93	0.54	0.71	0.92	0.24	0.71	0.89	-0.68	0.9	0.54	0.2	-0.51	0.93	0.4	0.88		0.37	0.67	0.65	0.84
Intangible Assets	0.52	0.49	-0.07	0.37	0.21	0.75	0.59	-0.22	-0.13	0.67	0.84	-0.13	0.46	0.34	0.62	0.14	-0.42	0.44	0.53	-0.01	0.33	0.37		0.72	0.26	-0.08
Property Plant Equipment	0.77	0.76	0.34	0.67	0.63	1.0	0.83	0.32	0.22	0.83	0.79	0.22	0.72	-0.17	0.77	0.49	-0.08	-0.1	0.75	0.37	0.66	0.67	0.72		0.47	0.38
Accounts Payable	0.83	0.76	0.68	0.89	0.59	0.46	0.76	0.58	0.47	0.7	0.18	0.47	0.87	-0.57	0.74	0.78	0.37	-0.52	0.82	0.27	0.91	0.65	0.26	0.47		0.75
Common Stock Total Equity	0.8	0.81	0.69	0.87	0.6	0.35	0.73	0.71	0.81	0.67	-0.14	0.81	0.82	-0.91	0.7	0.59	0.46	-0.79	0.79	0.38	0.88	0.84	-0.08	0.38	0.75

Click cells to compare fundamentals

Caterpillar Account Relationship Matchups

Caterpillar fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	78.5B	78.3B	82.8B	81.9B	87.5B	50.5B
Short Long Term Debt Total	37.7B	37.2B	37.8B	37.0B	38.5B	23.8B
Other Current Liab	8.1B	7.3B	8.9B	9.7B	11.3B	11.9B
Total Current Liabilities	26.6B	25.7B	29.8B	31.5B	34.7B	17.8B
Total Stockholder Equity	14.6B	15.3B	16.5B	15.9B	19.5B	20.5B
Property Plant And Equipment Net	12.9B	12.4B	8.2B	12.0B	12.7B	9.1B
Net Debt	29.4B	27.8B	28.5B	30.0B	31.5B	20.6B
Retained Earnings	34.4B	35.2B	39.3B	43.5B	51.3B	53.8B
Cash	8.3B	9.4B	9.3B	7.0B	7.0B	7.3B
Non Current Assets Total	39.3B	38.9B	39.3B	38.2B	40.5B	26.5B
Non Currrent Assets Other	3.3B	3.8B	4.1B	1.3B	3.3B	3.1B
Cash And Short Term Investments	8.3B	9.4B	9.3B	7.0B	7.0B	7.3B
Net Receivables	17.9B	16.8B	17.4B	17.9B	18.8B	12.0B
Common Stock Shares Outstanding	567.5M	548.6M	548.5M	530.4M	513.6M	568.7M
Liabilities And Stockholders Equity	78.5B	78.3B	82.8B	81.9B	87.5B	50.5B
Non Current Liabilities Total	37.2B	37.2B	36.4B	34.5B	33.2B	23.1B
Inventory	11.3B	11.4B	14.0B	16.3B	16.6B	17.4B
Other Current Assets	1.7B	1.9B	2.8B	2.6B	4.6B	4.8B
Other Stockholder Equity	(24.2B)	(25.2B)	(27.6B)	(31.7B)	(36.3B)	(34.5B)
Total Liab	63.8B	62.9B	66.3B	66.1B	68.0B	40.8B
Property Plant And Equipment Gross	12.9B	12.4B	12.1B	12.0B	28.6B	30.1B
Total Current Assets	39.2B	39.5B	43.5B	43.8B	46.9B	24.0B
Accumulated Other Comprehensive Income	(1.6B)	(888M)	(1.6B)	(2.5B)	(1.8B)	(1.9B)
Short Term Debt	11.4B	11.3B	11.8B	11.4B	13.6B	7.6B
Intangible Assets	1.6B	1.3B	1.0B	758M	564M	535.8M
Property Plant Equipment	12.9B	12.4B	8.2B	12.0B	13.8B	9.0B
Accounts Payable	6.0B	6.1B	8.2B	8.7B	7.9B	4.8B
Common Stock Total Equity	5.9B	6.2B	6.4B	6.6B	7.5B	4.1B
Common Stock	5.9B	6.2B	6.4B	6.6B	6.4B	4.2B
Other Liab	10.5B	11.2B	10.4B	8.4B	9.6B	9.8B
Other Assets	3.9B	18.8B	7.2B	6.8B	7.8B	4.4B
Long Term Debt	26.3B	26.0B	26.0B	25.7B	24.5B	21.9B
Treasury Stock	(24.2B)	(25.2B)	(27.6B)	(31.7B)	(28.6B)	(27.1B)
Current Deferred Revenue	1.2B	1.1B	1.1B	1.9B	1.9B	1.3B
Good Will	6.2B	6.4B	6.3B	5.3B	5.3B	4.9B
Short Term Investments	0.0	9.4B	964M	1.9B	2.2B	2.3B
Net Tangible Assets	6.8B	7.6B	9.1B	9.8B	11.3B	7.5B

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