Compare the gross profit percent, average markup percent, and ratio of sales to assets for Deere &

Question:

Compare the gross profit percent, average markup percent, and ratio of sales to assets for Deere & Company (DE) and Caterpillar Inc. (CAT) using the results of MBA 4-7 and MBA 4-8. Comment on any differences.

Data from MBA 4-7.

Deere & Company (DE) produces and sells tractors, loaders, combines, lawnmowers, and a variety of other equipment. The following data (in millions) were adapted from recent financial statements of Deere.

Year 2 Year 1 Sales $25,885 $23,387 Cost of goods sold Gross profit (19,934) $ 5,951 (18,249) $ 5,138

Data from MBA 4-8.

Caterpillar Inc. (CAT) produces and sells various types of equipment, including tractors, loaders, and mining equipment. The following data (in millions) were adapted from recent financial statements of Caterpillar.