Analysis of Reportable Segments
Cummins Inc. operates in 5 segments: Components; Engine; Distribution; Power Systems; and Accelera.
Segment Profit Margin
Cummins Inc., profit margin by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Components | 13.72% | 13.82% | 15.39% | 15.95% | 15.87% |
| Engine | 13.95% | 14.08% | 14.18% | 15.40% | 14.46% |
| Distribution | 11.80% | 9.95% | 9.41% | 9.32% | 8.13% |
| Power Systems | 14.74% | 11.84% | 11.23% | 9.45% | 11.48% |
| Accelera | -125.14% | -171.72% | -192.24% | -238.89% | -392.11% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Components | Components segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Engine | Engine segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. | |
| Distribution | Distribution segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. | |
| Power Systems | Power Systems segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. | |
| Accelera | Accelera segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Components
Cummins Inc.; Components; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment EBITDA | 1,840) | 1,346) | 1,180) | 961) | 1,097) |
| Sales | 13,409) | 9,736) | 7,665) | 6,024) | 6,914) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 13.72% | 13.82% | 15.39% | 15.95% | 15.87% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Segment EBITDA ÷ Sales
= 100 × 1,840 ÷ 13,409 = 13.72%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Components | Components segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Engine
Cummins Inc.; Engine; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment EBITDA | 1,630) | 1,541) | 1,411) | 1,235) | 1,454) |
| Sales | 11,684) | 10,945) | 9,954) | 8,022) | 10,056) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 13.95% | 14.08% | 14.18% | 15.40% | 14.46% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Segment EBITDA ÷ Sales
= 100 × 1,630 ÷ 11,684 = 13.95%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Engine | Engine segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Distribution
Cummins Inc.; Distribution; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment EBITDA | 1,209) | 888) | 731) | 665) | 656) |
| Sales | 10,249) | 8,929) | 7,772) | 7,136) | 8,071) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 11.80% | 9.95% | 9.41% | 9.32% | 8.13% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Segment EBITDA ÷ Sales
= 100 × 1,209 ÷ 10,249 = 11.80%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Distribution | Distribution segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Power Systems
Cummins Inc.; Power Systems; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment EBITDA | 836) | 596) | 496) | 343) | 512) |
| Sales | 5,673) | 5,033) | 4,415) | 3,631) | 4,460) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 14.74% | 11.84% | 11.23% | 9.45% | 11.48% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Segment EBITDA ÷ Sales
= 100 × 836 ÷ 5,673 = 14.74%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Power Systems | Power Systems segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Accelera
Cummins Inc.; Accelera; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment EBITDA | (443) | (340) | (223) | (172) | (149) |
| Sales | 354) | 198) | 116) | 72) | 38) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | -125.14% | -171.72% | -192.24% | -238.89% | -392.11% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Segment EBITDA ÷ Sales
= 100 × -443 ÷ 354 = -125.14%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Accelera | Accelera segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Return on Assets (Segment ROA)
Cummins Inc., ROA by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Components | 26.42% | 18.42% | 40.16% | 33.39% | 37.68% |
| Engine | 175.27% | 106.20% | 90.80% | 94.56% | 132.91% |
| Distribution | 51.49% | 32.91% | 31.87% | 27.21% | 25.87% |
| Power Systems | 43.14% | 25.02% | 22.03% | 16.07% | 22.81% |
| Accelera | -38.22% | -29.36% | -37.04% | -34.13% | -31.57% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Components | Components segment ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Engine | Engine segment ROA improved from 2021 to 2022 and from 2022 to 2023. | |
| Distribution | Distribution segment ROA improved from 2021 to 2022 and from 2022 to 2023. | |
| Power Systems | Power Systems segment ROA improved from 2021 to 2022 and from 2022 to 2023. | |
| Accelera | Accelera segment ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Segment ROA: Components
Cummins Inc.; Components; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment EBITDA | 1,840) | 1,346) | 1,180) | 961) | 1,097) |
| Net assets | 6,965) | 7,306) | 2,938) | 2,878) | 2,911) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 26.42% | 18.42% | 40.16% | 33.39% | 37.68% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment ROA = 100 × Segment EBITDA ÷ Net assets
= 100 × 1,840 ÷ 6,965 = 26.42%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Components | Components segment ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Segment ROA: Engine
Cummins Inc.; Engine; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment EBITDA | 1,630) | 1,541) | 1,411) | 1,235) | 1,454) |
| Net assets | 930) | 1,451) | 1,554) | 1,306) | 1,094) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 175.27% | 106.20% | 90.80% | 94.56% | 132.91% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment ROA = 100 × Segment EBITDA ÷ Net assets
= 100 × 1,630 ÷ 930 = 175.27%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Engine | Engine segment ROA improved from 2021 to 2022 and from 2022 to 2023. |
Segment ROA: Distribution
Cummins Inc.; Distribution; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment EBITDA | 1,209) | 888) | 731) | 665) | 656) |
| Net assets | 2,348) | 2,698) | 2,294) | 2,444) | 2,536) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 51.49% | 32.91% | 31.87% | 27.21% | 25.87% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment ROA = 100 × Segment EBITDA ÷ Net assets
= 100 × 1,209 ÷ 2,348 = 51.49%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Distribution | Distribution segment ROA improved from 2021 to 2022 and from 2022 to 2023. |
Segment ROA: Power Systems
Cummins Inc.; Power Systems; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment EBITDA | 836) | 596) | 496) | 343) | 512) |
| Net assets | 1,938) | 2,382) | 2,251) | 2,134) | 2,245) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 43.14% | 25.02% | 22.03% | 16.07% | 22.81% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment ROA = 100 × Segment EBITDA ÷ Net assets
= 100 × 836 ÷ 1,938 = 43.14%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Power Systems | Power Systems segment ROA improved from 2021 to 2022 and from 2022 to 2023. |
Segment ROA: Accelera
Cummins Inc.; Accelera; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment EBITDA | (443) | (340) | (223) | (172) | (149) |
| Net assets | 1,159) | 1,158) | 602) | 504) | 472) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | -38.22% | -29.36% | -37.04% | -34.13% | -31.57% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment ROA = 100 × Segment EBITDA ÷ Net assets
= 100 × -443 ÷ 1,159 = -38.22%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Accelera | Accelera segment ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Segment Asset Turnover
Cummins Inc., asset turnover by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Components | 1.93 | 1.33 | 2.61 | 2.09 | 2.38 |
| Engine | 12.56 | 7.54 | 6.41 | 6.14 | 9.19 |
| Distribution | 4.36 | 3.31 | 3.39 | 2.92 | 3.18 |
| Power Systems | 2.93 | 2.11 | 1.96 | 1.70 | 1.99 |
| Accelera | 0.31 | 0.17 | 0.19 | 0.14 | 0.08 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Components | Components segment asset turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Engine | Engine segment asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. | |
| Distribution | Distribution segment asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. | |
| Power Systems | Power Systems segment asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. | |
| Accelera | Accelera segment asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Segment Asset Turnover: Components
Cummins Inc.; Components; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 13,409) | 9,736) | 7,665) | 6,024) | 6,914) |
| Net assets | 6,965) | 7,306) | 2,938) | 2,878) | 2,911) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.93 | 1.33 | 2.61 | 2.09 | 2.38 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment asset turnover = Sales ÷ Net assets
= 13,409 ÷ 6,965 = 1.93
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Components | Components segment asset turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Segment Asset Turnover: Engine
Cummins Inc.; Engine; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 11,684) | 10,945) | 9,954) | 8,022) | 10,056) |
| Net assets | 930) | 1,451) | 1,554) | 1,306) | 1,094) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 12.56 | 7.54 | 6.41 | 6.14 | 9.19 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment asset turnover = Sales ÷ Net assets
= 11,684 ÷ 930 = 12.56
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Engine | Engine segment asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Asset Turnover: Distribution
Cummins Inc.; Distribution; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 10,249) | 8,929) | 7,772) | 7,136) | 8,071) |
| Net assets | 2,348) | 2,698) | 2,294) | 2,444) | 2,536) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 4.36 | 3.31 | 3.39 | 2.92 | 3.18 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment asset turnover = Sales ÷ Net assets
= 10,249 ÷ 2,348 = 4.36
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Distribution | Distribution segment asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Segment Asset Turnover: Power Systems
Cummins Inc.; Power Systems; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 5,673) | 5,033) | 4,415) | 3,631) | 4,460) |
| Net assets | 1,938) | 2,382) | 2,251) | 2,134) | 2,245) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 2.93 | 2.11 | 1.96 | 1.70 | 1.99 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment asset turnover = Sales ÷ Net assets
= 5,673 ÷ 1,938 = 2.93
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Power Systems | Power Systems segment asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Asset Turnover: Accelera
Cummins Inc.; Accelera; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 354) | 198) | 116) | 72) | 38) |
| Net assets | 1,159) | 1,158) | 602) | 504) | 472) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.31 | 0.17 | 0.19 | 0.14 | 0.08 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment asset turnover = Sales ÷ Net assets
= 354 ÷ 1,159 = 0.31
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Accelera | Accelera segment asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Segment Capital Expenditures to Depreciation
Cummins Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Components | 0.76 | 0.87 | 1.01 | 0.73 | 0.86 |
| Engine | 2.39 | 1.80 | 1.66 | 0.97 | 1.19 |
| Distribution | 0.90 | 1.00 | 0.79 | 0.73 | 1.18 |
| Power Systems | 0.94 | 0.80 | 0.61 | 0.61 | 0.91 |
| Accelera | 1.33 | 1.95 | 1.54 | 1.00 | 2.17 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Components | Components segment capital expenditures to depreciation ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Engine | Engine segment capital expenditures to depreciation ratio improved from 2021 to 2022 and from 2022 to 2023. | |
| Distribution | Distribution segment capital expenditures to depreciation ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. | |
| Power Systems | Power Systems segment capital expenditures to depreciation ratio improved from 2021 to 2022 and from 2022 to 2023. | |
| Accelera | Accelera segment capital expenditures to depreciation ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Segment Capital Expenditures to Depreciation: Components
Cummins Inc.; Components; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 373) | 264) | 184) | 140) | 191) |
| Depreciation and amortization | 491) | 304) | 183) | 192) | 222) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.76 | 0.87 | 1.01 | 0.73 | 0.86 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 373 ÷ 491 = 0.76
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Components | Components segment capital expenditures to depreciation ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Capital Expenditures to Depreciation: Engine
Cummins Inc.; Engine; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 538) | 368) | 341) | 202) | 240) |
| Depreciation and amortization | 225) | 205) | 205) | 208) | 202) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 2.39 | 1.80 | 1.66 | 0.97 | 1.19 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 538 ÷ 225 = 2.39
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Engine | Engine segment capital expenditures to depreciation ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Capital Expenditures to Depreciation: Distribution
Cummins Inc.; Distribution; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 103) | 114) | 92) | 89) | 136) |
| Depreciation and amortization | 115) | 114) | 116) | 122) | 115) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.90 | 1.00 | 0.79 | 0.73 | 1.18 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 103 ÷ 115 = 0.90
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Distribution | Distribution segment capital expenditures to depreciation ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Segment Capital Expenditures to Depreciation: Power Systems
Cummins Inc.; Power Systems; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 115) | 96) | 80) | 79) | 107) |
| Depreciation and amortization | 122) | 120) | 131) | 130) | 118) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.94 | 0.80 | 0.61 | 0.61 | 0.91 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 115 ÷ 122 = 0.94
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Power Systems | Power Systems segment capital expenditures to depreciation ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Capital Expenditures to Depreciation: Accelera
Cummins Inc.; Accelera; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 84) | 74) | 37) | 18) | 26) |
| Depreciation and amortization | 63) | 38) | 24) | 18) | 12) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.33 | 1.95 | 1.54 | 1.00 | 2.17 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 84 ÷ 63 = 1.33
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Accelera | Accelera segment capital expenditures to depreciation ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Sales
Cummins Inc., sales by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Components | 13,409) | 9,736) | 7,665) | 6,024) | 6,914) |
| Engine | 11,684) | 10,945) | 9,954) | 8,022) | 10,056) |
| Distribution | 10,249) | 8,929) | 7,772) | 7,136) | 8,071) |
| Power Systems | 5,673) | 5,033) | 4,415) | 3,631) | 4,460) |
| Accelera | 354) | 198) | 116) | 72) | 38) |
| Total segments | 41,369) | 34,841) | 29,922) | 24,885) | 29,539) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Segment EBITDA
Cummins Inc., segment ebitda by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Components | 1,840) | 1,346) | 1,180) | 961) | 1,097) |
| Engine | 1,630) | 1,541) | 1,411) | 1,235) | 1,454) |
| Distribution | 1,209) | 888) | 731) | 665) | 656) |
| Power Systems | 836) | 596) | 496) | 343) | 512) |
| Accelera | (443) | (340) | (223) | (172) | (149) |
| Total segments | 5,072) | 4,031) | 3,595) | 3,032) | 3,570) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Depreciation and amortization
Cummins Inc., depreciation and amortization by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Components | 491) | 304) | 183) | 192) | 222) |
| Engine | 225) | 205) | 205) | 208) | 202) |
| Distribution | 115) | 114) | 116) | 122) | 115) |
| Power Systems | 122) | 120) | 131) | 130) | 118) |
| Accelera | 63) | 38) | 24) | 18) | 12) |
| Total segments | 1,016) | 781) | 659) | 670) | 669) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Net assets
Cummins Inc., net assets by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Components | 6,965) | 7,306) | 2,938) | 2,878) | 2,911) |
| Engine | 930) | 1,451) | 1,554) | 1,306) | 1,094) |
| Distribution | 2,348) | 2,698) | 2,294) | 2,444) | 2,536) |
| Power Systems | 1,938) | 2,382) | 2,251) | 2,134) | 2,245) |
| Accelera | 1,159) | 1,158) | 602) | 504) | 472) |
| Total segments | 13,340) | 14,995) | 9,639) | 9,266) | 9,258) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Capital expenditures
Cummins Inc., capital expenditures by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Components | 373) | 264) | 184) | 140) | 191) |
| Engine | 538) | 368) | 341) | 202) | 240) |
| Distribution | 103) | 114) | 92) | 89) | 136) |
| Power Systems | 115) | 96) | 80) | 79) | 107) |
| Accelera | 84) | 74) | 37) | 18) | 26) |
| Total segments | 1,213) | 916) | 734) | 528) | 700) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).