Caterpillar

Halal Rating :
Comfortable
Last Price $377
Market Cap $179.33b
1D Change

0.0 %

1 Year Change

25.83 %

Next Earnings Date

Yet to be announced

Company Overview

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold planers, and other vehicles. Resource Industries segment provides electric rope shovels, draglines, hydraulic shovels and rotary drills. Energy & Transportation segment offers reciprocating engines, generator sets, integrated systems and solutions. Financial Products segment provides operating and finance leases, installment sale contracts, working capital loans, and wholesale financing plans.

Revenue Sources

Pass

Caterpillar's primary revenue streams come from the manufacture and sale of heavy equipment, machinery, and related services. All these sources are halal as they involve the exchange of tangible goods and services. The company's financial services segment provides financing for their equipment, which constitutes interest-based lending. However, based on the financial data, this represents less than 2.5% of total revenue across the analyzed periods.

Reliance on Interest

Pass
Reporting Date Total Revenue Total Expense Interest Income Interest Expense Interest Income Ratio Interest Expense Ratio
Sept. 30, 2024 $16.11b $13.08b - $125.0m 0.00% 0.96%
June 30, 2024 $16.69b $13.34b - $451.0m 0.00% 3.38%
March 31, 2024 $15.8b $12.42b - $143.0m 0.00% 1.15%
Dec. 31, 2023 $17.07b $14.06b - $-120,000,000.0 0.00% 0.85%

Analyzing the last four quarters of financial data: Interest expense as a percentage of total expenses has remained consistently low, ranging between 0.8-3.4% of total expenses across all quarters. This level of interest expense is considered incidental to operations rather than a core part of the business model.

Operational Ethics

Pass

Caterpillar maintains business operations in China, but there is no clear evidence of direct collaboration with the Chinese Communist Party. While the company has faced historical controversy regarding the use of its equipment in Israel, current research does not indicate direct ongoing operational presence or R&D facilities in Israel.

Rating Justification

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Comments

4 Comments

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THEIR PRODUCTS ARE DESTROYING GAZA RIGHT NOW

[email protected] | 1 day, 11 hours ago | 0 Replies
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This has to be a joke guys? Of course not halal: https://www.whoprofits.org/companies/company/3772

[email protected] | Edited: 6 days, 10 hours ago | 0 Replies
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supporters of the ZİONİST entity should not be on your list

[email protected] | 1 month, 1 week ago | 0 Replies
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removing it from my watchlist as well hawk tfuu

[email protected] | 4 months, 3 weeks ago | 0 Replies
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