Caterpillar Inc (CAT) released its first quarter results on Friday, April 30, 2021. The company reported net earnings of $2.77 per share for the first quarter ending March 31, 2021. Earnings for this past quarter were up 40 percent compared to the same period a year ago.
The company was founded in 1925 and is headquartered in Deerfield, Illinois. Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. Its Construction Industries segment offers asphalt pavers, compactors, cold planers, motorgraders, pipelayers, road reclaimers, telehandlers, and utility vehicles; backhoe, compact track, multi-terrain, skid steer, and track-type loaders; forestry and wheel excavators; and site prep and track-type tractors.
Caterpillar's revenue decreased 16 percent over the past trailing twelve-month period versus the previous twelve-month period. Gross margins increased to 36.48% for the first quarter compared to the same period in the previous year, and operating margins increased to 15.26% over the same period. Net earnings for past trailing twelve months were $3436.0 million, down 35% from the prior year.
Moving on to the balance sheet, Caterpillar’s cash levels jumped 59% for the first quarter over the same period last year. Overall liquidity of the balance sheet, as measured by the current ratio, increased 13.03% this past year. The current ratio for Caterpillar now stands at 1.6. The company decreased shares outstanding by 0.87%.
Shares of CAT are currently trading around $228.11. In terms of valuation, the stock is trading at a trailing twelve-month price to earnings ratio of 36.48 and price to book ratio of 7.59.