Analysis of Revenues
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Reportable Segments
- Price to FCFE (P/FCFE)
- Selected Financial Data since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
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Revenues as Reported
Cummins Inc., income statement, revenues
US$ in millions
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).
- Overall Revenue Trend
- The overall external sales of the company show a significant upward trend over the analyzed period. Starting at approximately $23.6 billion in 2019, there is a decline in 2020 to roughly $19.8 billion, likely impacted by external factors affecting that fiscal year. From 2021 onward, there is a sustained recovery and growth, reaching approximately $34.1 billion by 2023, indicating a strong rebound and expansion.
- Components Segment
- The Components segment exhibits consistent growth throughout the period. Revenues increase from $5.3 billion in 2019 to $11.5 billion in 2023, more than doubling. Notably, some categories such as “Axles and brakes” show data only from 2022 and 2023, with a sharp rise from $1.9 billion to $4.8 billion in a single year. Other categories including Emission Solutions and Atmus demonstrate steady increases, reflecting strengthened market demand or product portfolio enhancements.
- Engine Segment
- The Engine segment experienced a decrease from 2019 ($7.6 billion) to 2020 ($5.9 billion), similar to the overall trend, but recovered steadily from 2021 ($7.6 billion) to 2023 ($8.9 billion). Subcategories such as Heavy-duty truck and Medium-duty truck and bus display varied patterns. Heavy-duty truck revenues fell considerably in 2020, followed by recovery and growth, whereas Medium-duty truck and bus, after a decline in 2020, recovers steadily but at a slower pace. Light-duty automotive revenue has remained relatively stable with minor fluctuations.
- Power Systems Segment
- The Power Systems segment shows a decline in 2020, decreasing to $2.05 billion from $2.67 billion in 2019, followed by moderate growth reaching $3.1 billion in 2023. Within this segment, Generator Technologies and Industrial categories both recover after initial 2020 declines, with Industrial revenue increasing from $638 million in 2020 to $970 million in 2023.
- Distribution Segment
- The Distribution segment achieved robust growth across the period, with revenues decreasing in 2020 but rebounding strongly thereafter from $7.7 billion in 2021 to $10.2 billion in 2023. Both Parts and Service revenues increased consistently, indicating a strengthened aftermarket and distribution business.
- Other Observations
- Automated transmissions show growth from a low base in 2020 but remain a smaller contributor overall compared to other segments. Software and electronics revenue declined notably in 2021 and 2022, recovering slightly in 2023, suggesting challenges or transitions within this area.
- The emergence of the Axles and brakes category reported only in 2022 and 2023 with substantial revenue indicates either a new business line or reclassification of product offerings, contributing significantly to total revenues.
- The acceleration subcategory exhibits the most striking percentage growth, increasing nearly ninefold from 2019 to 2023, though it remains small in absolute terms.
- Conclusion
- In summary, the company's revenue experienced a dip in 2020 consistent with broader market disruptions but has demonstrated strong recovery and growth across most business segments through 2023. The Components and Distribution segments are key growth drivers, while the Engine segment shows signs of rejuvenation following earlier declines. New or expanded business lines such as Axles and brakes and Accelera contribute positively to overall revenues. Some segments like Software and electronics may require further strategic focus due to inconsistent performance.