CATERPILLAR Financials

Please note, the presentation of CATERPILLAR's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, CATERPILLAR's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of CATERPILLAR's management manipulating its earnings.

CATERPILLAR's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. CATERPILLAR volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.

The output start index for this execution was twenty-eight with a total number of output elements of thirty-three. The Beta measures systematic risk based on how returns on CATERPILLAR FINANCIAL correlated with the market. If Beta is less than 0 CATERPILLAR generally moves in the opposite direction as compared to the market. If CATERPILLAR Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one CATERPILLAR FINANCIAL is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of CATERPILLAR is generally in the same direction as the market. If Beta > 1 CATERPILLAR moves generally in the same direction as, but more than the movement of the benchmark.