Abstract:
Long the pride of Peoria, Illinois, Caterpillar, Inc. has established itself as a premier global manufacturing powerhouse whose commercial construction, transportation and engine solutions have come to symbolize durability, quality, and economic progress. This project paper examines the operational and financial numbers resulting from the company’s global sales reach. This paper reviews the publically available corporate financial results for the last decade. This financial data review will be expanded to incorporate how operating and investing activities and results have also impact the Caterpillar bottom line. The paper will conclude with a short summary analysis providing team conclusions to whether the Caterpillar …show more content…
Machinery and Engines operating cash flow of $5.446 billion was up 18 percent from 2006 and was an all time record. As a result of record Machinery and Engines operating cash flows over the past three years, the financial position remained very strong with a year-end debt-to-capital ratio for Machinery and Engines of 31.2 percent.
In 2008, Caterpillar expects another record year with sales and revenues increasing 5 to 10 percent and profit per share increasing 5 to 15 percent from 2007. The outlook reflects continued growth at a time when the economy is expecting recessionary conditions to persist in key markets in the United States. Caterpillar is starting 2008 with a very strong order backlog, particularly for larger products like industrial gas turbines, large reciprocating engines and mining trucks. While expectations are for anemic growth in the U.S. economy, Cat continues to see positive conditions for sales in most of the rest of the world. They will be stepping up research and development (R&D) for new products and capital investment to increase capacity around the world. Caterpillar expects the world’s robust investment in infrastructure to continue well into the next decade, and understands the need for more capacity to serve their customers.

Analysis of 2006 Statement of Cash Flows Operating Activities
Caterpillar generated much cash flow from operating activities,