Valuation check: CAT's ROE is 55.85%, above the Industrials sector average of 8.49%.
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Return on Equity measures how efficiently a company uses shareholders' equity to generate profits. A higher ROE indicates better profitability relative to equity.
Caterpillar's return on equity stands at 55.85%. That is above the Industrials sector average of 8.49%. Stockcircle updates this page with the newest filings so you can track how the metric evolves quarter by quarter.
Caterpillar sits higher the Industrials benchmark (8.49%) with a ROE of 55.85%. That is roughly 558.1% above the sector mean. Peer context matters because what looks expensive or cheap in absolute terms can be normal for the sector.
A ROE of 55.85% for Caterpillar means each unit of related capital or sales is generating that return rate. Higher is usually better for profitability metrics, but extremely high figures can reflect one-time items or thin equity bases. Review several years of data on this page before extrapolating.
The history chart shows how Caterpillar's ROE evolved across reporting periods, while the comparison chart places CAT next to similar companies. Use both: a rising metric that still lags peers tells a different story than a rising metric that already leads the group. Growth charts, when available, highlight acceleration or slowdown.
Yes — within Industrials, ROE is commonly used to spot outliers. Caterpillar's reading of 55.85% (sector avg 8.49%) is a starting point; confirm whether differences come from growth, margins, accounting choices, or one-time items before treating an outlier as a buy or sell signal.