ACCOUNTING REPORT

https://www.koyfin.com/company/CAT/total_assets

Business

· American Fortune 100 Company

· Designs, develops, engineers, manufactures, markets and sells machinery, engines, financial products and insurance

· Deals to customers via a worldwide dealer network

· Caterpillar is the World’s largest construction equipment manufacturer; One of the most valuable brands in the world.

· Its world-class distribution network and supply chain provide competitive advantage and increased production levels while catering to various customer needs.

· Caterpillar is a 93 year old company that has excelled and reached the top of its industry, till this day its stock value is still increasing and shows no signs of being heldback despite..

· Caterpillar has a good amount of worldwide competitors, the biggest being John deere, Hitachi, JCB, and Komatsu.

Moat

· Caterpillar’s wide moat rests heavily on its intangible assets, which include the strength of its brand and extensive dealer network across the globe.

· Interbrand ranked Cat as the worlds 89th most valuable brand, worth $4.9 billion.

· With 172 dealers across the globe, it employs 157,000 employees at 2,163 branches. In order to replicate its dealer network it would cost more than $20 billion.

· WIth coverage over every continent in the world its an ever increasing brand.

· Its book value per share iss $23.79, a 3.80% increase per year.

· Its dividend value per share is $3.28, a 5.80% increase.

· Cat’s EPS growth rate was 2.7% since last year

· Cash flow per share growth rate of Cat was 8.20% per year

· Caterpillar’s Sales Per Share growth rate was 1.12% since last quarter

Risk

· From 2013 to 2017 Caterpillar revenue was declining 4.2% which led to the net income increasing massively, due to general decline in the industries market.

· Revenue has been declining for the past five years, and a massive obligations has been taken by the company.

· From 2013 to this moment the long-term debt has grown to 8.4%. Moreover, 70% of Caterpillar total long-term obligations are due from now to 2022. WIch might affect the company financial strength.

Management

· Caterpillar’s CEO is Jim Umpleby, he has been CEO since January 1, 2017. He became chairman of the board of directors in 2018.

· He became a vice president for caterpillar in 2010, he also became president of Solar Turbines.

· Umpleby presented a new Corporate strategy to investors at a conference, describing it as a strategy focused on profitable growth through product expansion, and increased focus on operational excellence s. Barron’s, a U.S.-based financial magazine, described the new corporate strategy stating, “…investors can expect a more return-focused company

· Strategy has made fantastic progress on implementing priorities to profitably increase the company. Also guide the company to reach constant financial achievement, including record quarterly earnings per share in each quarter of 2018 to date.”

The comonay Financal ratio for Decmber 2018: ROE 44%

ROA: 8.69%

LT Debt Earning ratio: 1.78

Part 2

Billion	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018
Gross profit	8.51	12.22	16.56	18.82	14.93	14.47	13.47	10.49	14.20	17.73
Net Sales	0.895	0.2700	0.4928	0.5681	0.3789	0.2452	0.2512	-0.67	0.754	0.6147
Gross profit Ratio	9.50	4.52	3.36	3.31	3.94	5.90	5.36	-156.56	18.83	2.88

Millions	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018
Income form continue Operating
Net Sales	895	2700	4928	5681	3789	2452	2512	-67	754	6147
Net Income

Millions	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018
Operating income	577	3963	7153	8573	5628	3314	3785	1162	4460	8293
Net Sales	895	2700	4928	5681	3789	2452	2512	-67	754	6147
Operating Margin	0.64	1.47	1.45	1.51	1.49	1.35	1.51	-17.34	5.92	1.35

Millions	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018
Cash flow from operations activity	6499	5009	6957	5184	10191	8057	6699	5639	5706	6558
CAPEX	-2472	-2586	-3924	-5076	-4446	-3379	-3261	-2928	-2336	-2916
Free Cash Flow	8971	7595	10881	20260	14367	11436	9960	8567	8042	9474

Millions	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018
Free Cash Flow	8971	7595	10881	20260	14367	11436	9960	8567	8042	9474
Income from continue operations
Free Cash Flow Ratio

Price per earning ratio:

	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018
Price Per Earning Ratio:	31.39	18.03	9.95	8.80	13.44	13.62	17.89	0	121.54	12.36

The Company Financail Position: 1-Liquidity

Billion	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018
Current assets	$27.22	$31.81	$37.90	$42.14	$38.34	$38.87	$33.51	$31.97	$36.24	$38.60
Current Liability	$18.98	$22.02	$28.36	$29.42	$27.30	$27.88	$26.24	$26.13	$26.93	$28.22
Current Ratio	1.43	1.45	1.34	1.43	1.40	1.39	1.28	1.22	1.35	1.37

Millions	2009	2010	2011	2012	2013	2014	1015	2016	2017	2018
Cash and Cash Equivalents	$4,867	$3,592	$3,057	$5,490	$6,081	$7,341	$6,460	$7,168	$8,261	$7,857
Accounting Recivble	10	-32	-25	15	-41	77	6	32	-3	-95
Short Term Invesment	0	0	0	0	0	0	0	0	0	0
Current Liability	$18.98	$22.02	$28.36	$29.42	$27.30	$27.88	$26.24	$26.13	$26.93	$28.22
Quick Ratio	256.95	161.67	106.91	187.12	221.25	266.07	246.42	275.55	306.65	275.05

2-Solvency :

Millions	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018
Long Term Debt	$5,441	$4,424	$8,369	$8,593	$7,902	$9,408	$8,883	$8,368	$7,929	$8,005
Total Assets	$60,038	$64,020	$81,218	$88,970	$84,896	$84,681	$78,342	$74,704	$76,962	$78,509
Long Term debt to Total Assets Ratio	9%	7%	10%	10%	9%	11%	11%	11%	10%	10%

Part 3 :