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The 1 Thing You Need to Watch When Caterpillar Reports Earnings

By Blake Bos - Apr 19, 2013 at 5:16PM

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NYSE: CAT

Caterpillar Inc.

Market Cap

$111B

Today's Change

(1.40%) $2.86

Current Price

$207.19

Price as of May 16, 2022, 8:00 p.m. ET

Caterpillar's stock has been really lackluster recently. Can it deliver for investors this quarter?

Inventory is the name of the game for Caterpillar (NYSE: CAT) investors. In this video, Blake Bos describes the inventory problems facing Caterpillar. Two key metrics measure inventory status: inventory turnover (the bigger the better), and inventory outstanding (the smaller the better). In 2002, Caterpillar had a turnover of 5.9 times, and outstanding of 68 days. For the past year, it was 3.37 times, and 108 days. The past quarter was slightly worse. These are below the performance of such companies as Deere or Cummins. When Caterpillar's earnings announcement comes, be sure to watch these metrics. Caterpillar has been trying to move inventory, but the stock has been held back because of it. The upcoming report should shed some light as to how successful Caterpillar has been in dealing with its inventory.

Stocks Mentioned

Caterpillar Inc.

CAT

$207.19 (1.40%) $2.86

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