Preview

Financial Ratio and Caterpillar

Powerful Essays
Open Document
Open Document
3048 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Financial Ratio and Caterpillar
Executive Summary

Caterpillar is a company in the United States that makes engines tractors bulldozers and a lot of other kind of construction and mining equipment and they have many customers in the United States but also across the world. Caterpillar Is the leader in their industry because of their size and innovation of their machines and engines. The research conducted in this paper was to learn about the financial health, history and whether or not it would be a good idea to invest into Caterpillar and whether or not Caterpillar would be a good investment for the average investor. The History and background of caterpillar is discussed, so is the stock valuation and risk and the debt policy.

Table of Contents

History And Background

Caterpillar is an American corporation that designs, manufactures, markets and sells machinery and engines to customers worldwide. Caterpillar is the number one manufacturer of construction and mining equipment, diesel and natural gas engines. Caterpillar was founded in California on April 15, 1925. Today it s headquarters are located in Peoria Illinois. Caterpillar Inc. was incorporated in Delaware. Caterpillar employs about 125 thousand people around the world. Caterpillar operates all over the world with more than 100 facilities worldwide. But the major locations are in the United States, Russia, China and Brazil. The Key executives for caterpillar are David L. Calhoun who is currently the Chief Executive officer and has been since May 2010. Daniel M. Dickinson, Juan Gallardo, David R. Goode, Jesse J. Greene, JR. Caterpillar’s principle business is manufacturing construction and mining equipment as well as industrial gas turbine and diesel electric locomotives. Caterpillar’s principal customers and markets are mainly people who work in construction or manufacturing type jobs. People who need to do heavy duty work because caterpillar makes heavy-duty machinery like hydraulic excavators, backhoes, wheel

You May Also Find These Documents Helpful

  • Better Essays

    The concept of forecasting financials is as much about calculating the data is its about understanding the data. A simple concept of calculating the larger perspective for a simple index can be the keys to understanding the direction of the company. Calculating that direction will help those who associate with the company as owners, lenders, and board members to know if the company is credit worthy, turnaround on accounts receivables, and the long term financial health of the company.…

    • 987 Words
    • 4 Pages
    Better Essays
  • Good Essays

    FINANCIAL RATIOS

    • 616 Words
    • 4 Pages

    Financial ratios are indicators of a company’s performance as discernable from the company’s Balance Sheet and income Statement. We will discuss some of the simple ratios of a company and talk about their significance.…

    • 616 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Both companies operate with excellence, execute with a focus on customer satisfaction, and build a balanced portfolio for their investors. While most of companies are still coping with the financial meltdown, Caterpillar and John Deere have strengthened by their global strategic operations, lean organizational structure, and expansion for future growth opportunities. Caterpillar and John Deere’s balanced portfolio position themselves as one of the best companies to invest in.…

    • 2275 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    The world of finance in today’s market is one of numerous ups and downs. With the global economy in constant flux, it is more important than every for companies to examine their financial status and compare their position to that of the relative market as well as their fellow competitors. In order to better understand the ways in which today’s managers examine their position on the market and evaluate their current value as a company we will examine the financial data of Lockheed Martin Corporation and perform a detailed financial analysis on the company. In this analysis we will examine financial rations of Lockheed Martin and in turn compare these rations to that of fellow market competitors. Upon completion of our financial analysis we will be able to understand the financial position of Lockheed Martin as well as the position of Lockheed Martin in their respective market, and in turn we will be able to fully comprehend the methods and data used by companies in order to evaluate their company.…

    • 3132 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    Financial Ratios

    • 273 Words
    • 2 Pages

    Current Ratio- the current ratio is current assets divided by current liabilities. In the data from 2002 in Appendix D the current assets equal $104,296.00 and the current liabilities equal $139,017.00 the current ratio equals 0.75.…

    • 273 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Financial Ratios

    • 536 Words
    • 3 Pages

    The creditable performance calculation for the Valley of the Sun United Way (VSUW) is used to guarantee that their organization will perform at their most likely current ratio, long-term solvency ratio, contribution ratio, and general and management/expense ratio (Goetsch & Davis, 2010).…

    • 536 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    PM TI AGENDA Caterpillar Company & Strategy Assumptions PESTEL Analysis TCO Calculation Evaluation of Missing Information Recommendations TCO Improvement Axis Cost Sensitivity Estimation of Hidden Cost $60 Production Decision in Manitoba Currency Risk Assessment PM TI “Earthmoving solutions for today's challenges; 48 Hours Part Service Anywhere in the world or Caterpillar pays” Founded in 1925 in San Francisco Group providing:  Manufacturing  Construction and mining equipment  Diesel and natural gas engines…

    • 1503 Words
    • 7 Pages
    Satisfactory Essays
  • Best Essays

    Financial Ratios and Ratio

    • 4182 Words
    • 17 Pages

    This report provides a financial quarterly trend analysis for Costco Wholesale Corporation, Inc. founded in 1983. Costco Wholesale Corporation is the seventh largest retailer company in the world. As of July 2012, it was the fifth largest retailer, and the largest membership warehouse club chain in the United States ("Wikipedia, the free," 2011). Costco Wholesale Corporation’s stock is publicly traded on the National Association of Securities Dealers Automated Quotation (NASDAQ) under the symbol “COST”, which I will use as reference throughout this report.…

    • 4182 Words
    • 17 Pages
    Best Essays
  • Powerful Essays

    1. What is the purpose of financial statement analysis? It show trends and relationships. These also help predict the future, show weaknesses, strengths. The ratios usually are compared to other companies within the industry and industry average to see where the company stands.…

    • 5473 Words
    • 22 Pages
    Powerful Essays
  • Better Essays

    a. Why are ratios useful? What three groups use ratio analysis and for what reasons?…

    • 1372 Words
    • 6 Pages
    Better Essays
  • Better Essays

    Wal Mart Stock Analysis

    • 2691 Words
    • 11 Pages

    The purpose of this report is to evaluate the stock price of Wal-Mart Stores Inc. (which ticker symbol in NYSE is WMT) by fundamental analysis. According to this analysis, I recommend that Wal-Mart is worth to invest in the long term because of the potential growth of market shares and revenue. Besides, based on P/E method and Gordon model, WMT price is undervalued; therefore, if investors buy the stock, they will get benefit not only in capital gain but also in dividend cash inflow.…

    • 2691 Words
    • 11 Pages
    Better Essays
  • Satisfactory Essays

    Caterpillar is the world largest manufacturer of construction and mining equipment. The company produces as well engines and sells financial products. The mining industry is facing a hard year; companies like Rio Tinto claim that 2016 could have been one of the worst years in this industry. The reduction of consumption of minerals from China is one of the main reasons for this reduction. Therefore, Caterpillar production of machinery for mining is dropping.…

    • 248 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Financial Ratios

    • 7027 Words
    • 29 Pages

    In order to evaluate your understanding of the use of accounting information, you are asked to analyze the 2007 financial statements of The Procter & Gamble Company (P&G). The financial statements of P&G are presented in Appendix 5B or can be accessed at the book’s companion website, http://bcs.wiley.com/he-bcs/Books?action=index&itemId=0470374942&bcsId=4881. Based on the information in the 2007 Annual Report, answer the following questions. For each question, note the page number(s) on which you found the information to answer the question. Your answers should be complete sentences. For the ratios, show and label (write the formula in words and numbers) all computations.…

    • 7027 Words
    • 29 Pages
    Powerful Essays
  • Good Essays

    Introduction: The purpose of this memo is to summarize my analysis on the case regarding “Finning Tractor and Equipment Company Limited” which is the largest distributor of caterpillar products in North America. In this memo I will provide financial analysis on the company. In addition, I will focus on the dividend policy implemented by the board of directors and how it correlates to the performance of the company.…

    • 719 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Cadbury Vrio

    • 840 Words
    • 4 Pages

    The Debt/Equity ratio of the company is as low as 0.02%. This ratio is negligible and it can be said that it is almost an all equity company. Because of such a capital structure of the company, it gives the signal of a safe investment. The risk associated with the company will be low and hence it will be able to raise additional debt as well as equity with reasonable ease. However, we suggest that the company can take the benefit of financial leverage by raising debt in case of future capital requirements. It is outstanding that the company has huge Reserves and Surplus and hence they can fund projects through Internal Equity.…

    • 840 Words
    • 4 Pages
    Powerful Essays