A matrix formulation of the Cauer ladder network (CLN) method is derived using the finite element method to clarify the mathematical aspects of the CLN method. The CLN method directly yields orthogonal expansions of electric and magnetic fields that ensure the equivalence of the Cauer network to the eddy-current field. The CLN method is as exact as the Padé approximation via Lanczos (PVL) process but more efficiently provides the circuit parameters and the orthogonal expansion than the PVL.Index Terms-Cauer circuit, eddy current, finite element method, model order reduction