Week 1 Assignment 3: Financial Statement Analysis

School: Keiser University - Course: FIN 7580 - Subject: Accounting

Overview of the Company Caterpillar, Inc., ticker symbol CAT, takes part in the production of building and excavating apparatus, diesel and natural gas engines, industrial gas turbines, and diesel-electric engines. It functions through the following sections: Construction Industries, Resource Industries, Energy and Transportation, Financial Products, and All Other. The Construction Industries section provides clients using equipment in groundwork and building construction requests. The Resource Industries subdivision is in charge of assisting clients by means of equipment in excavating and dig up requests and it comprises commercial policy, product strategy, product administration and expansion, business, promotion, and trades and product backing. The Energy and Transportation subdivision assists consumers in oil and gas, power production, marine, rail, and industrial requests. The Financial Products subdivision deals in a variety of financing substitutes to clients and merchants for caterpillar equipment and locomotives, solar gas turbines, among other tools and marine containers. The All Other segment comprises of undertakings like the commercial plan, product administration and growth, production of sieves and liquids, undercarriage, tires and rims, connecting apparatuses, and liquid transmissions. The company is currently trading at 256.40 market price per share.

Income Statements An analysis of the trend in the revenues shows that there is a decline in revenue in the period between 2019-2020 and the same increases between 2020-2021. The revenue in 2019 was 30.45 billion and the amount decreased to 27.26 billion but recovered to 27.83 billion in the year

2021. From 2019-2021, the change in trend in the ration of revenue is 1, 0.895 and 0.914 respectively. The operating income on the other hand followed the same trend whereby the value decreased in 2020 from 2019 and later increased from 2020 in the period 2021. The value of operating income in the year 2019 stood at 82.9 billion, in 2020 the value was at 45.53 billion while in 2021 the value increased to 68.78 billion. The trend between the years commencing from 2019 through to 2021 was 1, 0.549 and 0.8297. The net income in this case made tremendous changes from 1 to 0.492 and later to 1.065 from the period 2019 to 2021. The net income in 2019 was 60.93 billion, 29.98 billion in 2020 and later 64.89 billion in 2021.