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Financial Ratio and Caterpillar

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Financial Ratio and Caterpillar
Executive Summary

Caterpillar is a company in the United States that makes engines tractors bulldozers and a lot of other kind of construction and mining equipment and they have many customers in the United States but also across the world. Caterpillar Is the leader in their industry because of their size and innovation of their machines and engines. The research conducted in this paper was to learn about the financial health, history and whether or not it would be a good idea to invest into Caterpillar and whether or not Caterpillar would be a good investment for the average investor. The History and background of caterpillar is discussed, so is the stock valuation and risk and the debt policy.

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History And Background

Caterpillar is an American corporation that designs, manufactures, markets and sells machinery and engines to customers worldwide. Caterpillar is the number one manufacturer of construction and mining equipment, diesel and natural gas engines. Caterpillar was founded in California on April 15, 1925. Today it s headquarters are located in Peoria Illinois. Caterpillar Inc. was incorporated in Delaware. Caterpillar employs about 125 thousand people around the world. Caterpillar operates all over the world with more than 100 facilities worldwide. But the major locations are in the United States, Russia, China and Brazil. The Key executives for caterpillar are David L. Calhoun who is currently the Chief Executive officer and has been since May 2010. Daniel M. Dickinson, Juan Gallardo, David R. Goode, Jesse J. Greene, JR. Caterpillar’s principle business is manufacturing construction and mining equipment as well as industrial gas turbine and diesel electric locomotives. Caterpillar’s principal customers and markets are mainly people who work in construction or manufacturing type jobs. People who need to do heavy duty work because caterpillar makes heavy-duty machinery like hydraulic excavators, backhoes, wheel

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