Caterpillar Depreciation And Amortization vs Tax Provision Analysis
CAT Stock | USD 343.38 5.38 1.59% |
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 Depreciation And Amortization and its Tax Provision accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Caterpillar. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. For more information on how to buy Caterpillar Stock please use our How to Invest in Caterpillar guide.
Depreciation And Amortization vs Tax Provision
Depreciation And Amortization vs Tax Provision Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Caterpillar Depreciation And Amortization account and Tax Provision. At this time, the significance of the direction appears to have no relationship.
The correlation between Caterpillar's Depreciation And Amortization and Tax Provision is 0.09. Overlapping area represents the amount of variation of Depreciation And Amortization that can explain the historical movement of Tax Provision in the same time period over historical financial statements of Caterpillar, assuming nothing else is changed. The correlation between historical values of Caterpillar's Depreciation And Amortization and Tax Provision is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Depreciation And Amortization of Caterpillar are associated (or correlated) with its Tax Provision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Tax Provision has no effect on the direction of Depreciation And Amortization i.e., Caterpillar's Depreciation And Amortization and Tax Provision go up and down completely randomly.
Correlation Coefficient | 0.09 |
Relationship Direction | Positive |
Relationship Strength | Insignificant |
Depreciation And Amortization
The systematic reduction in the recorded value of an intangible asset. This includes the allocation of the cost of tangible assets to periods in which the assets are used, representing the expense related to the wear and tear, deterioration, or obsolescence of physical assets and intangible assets over their useful lives.Tax Provision
The amount set aside by a company to cover any estimated taxes for the current period. It reflects the company's expected tax liabilities.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, which includes a position in Caterpillar. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. For more information on how to buy Caterpillar Stock please use our How to Invest in Caterpillar guide.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 | 23.5B | 24.6B | Total Revenue | 51.0B | 59.4B | 67.1B | 35.3B |
Caterpillar fundamental ratios Correlations
Click cells to compare fundamentals
Caterpillar Account Relationship Matchups
High Positive Relationship
High Negative Relationship
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 | 13.2B | 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 | 830M | 788.5M | |
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 | 19.1B | 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 | 11.7B | 4.3B | 4.6B | |
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 | 11.2B | 11.8B | 11.3B | 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 |
Caterpillar Investors Sentiment
The influence of Caterpillar's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Caterpillar. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Caterpillar's public news can be used to forecast risks associated with an investment in Caterpillar. The trend in average sentiment can be used to explain how an investor holding Caterpillar can time the market purely based on public headlines and social activities around Caterpillar. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Caterpillar's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Caterpillar's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Caterpillar's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Caterpillar.
Caterpillar Implied Volatility | 28.98 |
Caterpillar's implied volatility exposes the market's sentiment of Caterpillar stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Caterpillar's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Caterpillar stock will not fluctuate a lot when Caterpillar's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Caterpillar in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Caterpillar's short interest history, or implied volatility extrapolated from Caterpillar options trading.
Pair Trading with Caterpillar
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Caterpillar position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Caterpillar will appreciate offsetting losses from the drop in the long position's value.Moving against Caterpillar Stock
0.88 | GP | GreenPower Motor Financial Report 12th of July 2024 | PairCorr |
0.86 | TWI | Titan International Financial Report 1st of May 2024 | PairCorr |
0.83 | LNN | Lindsay Financial Report 4th of July 2024 | PairCorr |
0.77 | LEV | Lion Electric Corp Financial Report 14th of May 2024 | PairCorr |
0.65 | MNTX | Manitex International Financial Report 2nd of May 2024 | PairCorr |
The ability to find closely correlated positions to Caterpillar could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Caterpillar when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Caterpillar - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Caterpillar to buy it.
The correlation of Caterpillar is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Caterpillar moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Caterpillar moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Caterpillar can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Caterpillar. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. For more information on how to buy Caterpillar Stock please use our How to Invest in Caterpillar guide.Note that the Caterpillar information on this page should be used as a complementary analysis to other Caterpillar's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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Is Caterpillar's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Caterpillar. If investors know Caterpillar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Caterpillar listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.537 | Dividend Share 5.2 | Earnings Share 22.11 | Revenue Per Share 132.661 | Quarterly Revenue Growth (0) |
The market value of Caterpillar is measured differently than its book value, which is the value of Caterpillar that is recorded on the company's balance sheet. Investors also form their own opinion of Caterpillar's value that differs from its market value or its book value, called intrinsic value, which is Caterpillar's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Caterpillar's market value can be influenced by many factors that don't directly affect Caterpillar's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Caterpillar's value and its price as these two are different measures arrived at by different means. Investors typically determine if Caterpillar is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Caterpillar's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.