• Caterpillar average operating margin for 2023 was 16.76%, a 25.64% increase from 2022.
• Caterpillar average operating margin for 2022 was 13.34%, a 3.09% increase from 2021.
• Caterpillar average operating margin for 2021 was 12.94%, a 3.27% increase from 2020.

Operating margin can be defined as operating margin measurement of what proportion of a company's revenue is left over after paying for variable costs of production such as wages, raw materials, etc.