Caterpillar Inc

CAT
Failed

Company Overview

Caterpillar, Inc. engages in the manufacture of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. It operates through the following segments: Construction Industries, Resource Industries, Energy and Transportation, Financial Products, and All Other. The Construction Industries segment supports customers using machinery in infrastructure and building construction applications. The Resource Industries segment is responsible for supporting customers using machinery in mining and quarrying applications and it includes business strategy, product design, product management and development, manufacturing, marketing, and sales and product support. The Energy and Transportation segment supports customers in oil and gas, power generation, marine, rail, and industrial applications. The Financial Products segment offers a range of financing alternatives to customers and dealers for caterpillar machinery and engines, solar gas turbines, as well as other equipment and marine vessels. The All Other segment includes activities such as the business strategy, product management and development, and manufacturing of filters and fluids, undercarriage, tires and rims, engaging tools, and fluid transfers. The company was founded on April 15, 1925, and is headquartered in Irving, TX.

Country
US
Market Cap
$142.75B
Last Fiscal Year
2023
Final Shariah Status
Failed
Compliance Analysis Overview

Shariah Compliance Benchmarks:

  • Business Compliance: Non-Shariah compliant revenue must be less than 5% of total revenue
  • Liabilities Compliance: Interest-bearing debt must be less than 33% of market capitalization
Business Compliance
41.82% failed
5% Threshold
41.8%
Liabilities Compliance
26.54% passed
33% Threshold
26.5%
Final Shariah Status
Failed

This stock does not meet all Shariah compliance criteria according to AAOIFI standards.

Stock Information
Name Caterpillar Inc
Ticker CAT
Main Business Farm & Heavy Construction Machinery
Type Securities
Industry
Country US
Market Cap $142.75 B

Shariah Analysis Breakdown

Business compliance Breakdown
Revenue Segment Value ($M) Non-Compliant ($M) Reason
Sales of Machinery, Energy & Transportation $57.0 $0.0 Construction, resource industries, energy and transportation
Revenues of Financial Products $2,853.0 $2,853.0 Financial
Other income $1,291.0 $167.0 Investment and interest income
Total $4,201.0 $3,020.0 41.82% (failed)
Liabilities Compliance Breakdown
Liability Item Value ($M) % of Market Cap
current debt and capital lease obligation $13,410,000,000.0 9.39%
long term debt and capital lease obligation $24,470,000,000.0 17.14%
Total Interest-Bearing Debt $37,880,000,000.0 26.54%
Market Capitalization $142,749,476,000.0 100.00%
Compliance Status Threshold: 33% passed