Other

Long-Term Receivables

CAT uses long-term receivables as a marketing tool to provide financing to the purchase of its equipment, so it makes sense this line grows at the same rate as sales.

Cost of Debt

Caterpillar is a highly rated borrower in the financial markets.

From this website here: Caterpillar , we can assume CAT’s effective yield to maturity to be: circa 3.75%

Interest earned on Cash and Short-term securities

We can assume that interest rates are very low, and that CAT earns 1% on its short-term cash investments.