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Cummins Inc. (NYSE:CMI)

This company has been moved to the archive! The financial data has not been updated since May 2, 2024.

Common-Size Income Statement
Quarterly Data

Cummins Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Oct 3, 2021 Jul 4, 2021 Apr 4, 2021 Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020 Dec 31, 2019 Sep 29, 2019 Jun 30, 2019 Mar 31, 2019
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -75.71 -76.58 -75.44 -75.13 -76.00 -76.59 -77.61 -73.79 -76.01 -77.49 -76.31 -75.81 -75.61 -76.66 -73.64 -76.90 -74.18 -76.46 -74.10 -73.62 -74.48
Gross margin 24.29% 23.42% 24.56% 24.87% 24.00% 23.41% 22.39% 26.21% 23.99% 22.51% 23.69% 24.19% 24.39% 23.34% 26.36% 23.10% 25.82% 23.54% 25.90% 26.38% 25.52%
Selling, general and administrative expenses -9.98 -10.25 -9.86 -10.11 -8.91 -9.55 -9.65 -9.44 -9.63 -10.75 -9.57 -9.82 -9.42 -9.88 -10.41 -12.20 -10.90 -11.33 -10.40 -10.11 -9.88
Research, development and engineering expenses -4.39 -4.57 -4.46 -4.45 -4.14 -4.29 -4.75 -4.54 -4.67 -4.92 -4.46 -4.52 -4.27 -4.37 -4.38 -4.91 -4.75 -4.86 -4.20 -4.03 -3.95
Equity, royalty and interest income from investees 1.46 1.32 1.40 1.54 1.41 1.13 0.95 1.44 1.50 1.86 1.58 2.24 2.72 1.89 1.91 2.99 2.57 1.33 1.18 1.54 1.53
Restructuring actions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -2.13 0.00 0.00 0.00
Other operating income (expense), net -0.39 -24.11 -0.38 -0.31 -0.22 -0.39 -0.41 -0.05 -1.74 -0.24 -0.08 -0.07 -0.13 -0.19 -0.39 -0.26 -0.10 -0.20 -0.36 -0.14 0.08
Operating income and expenses -13.30% -37.61% -13.30% -13.32% -11.87% -13.09% -13.86% -12.59% -14.53% -14.05% -12.53% -12.16% -11.10% -12.56% -13.27% -14.38% -13.17% -17.19% -13.78% -12.75% -12.21%
Operating income 10.98% -14.19% 11.27% 11.54% 12.14% 10.32% 8.54% 13.62% 9.46% 8.46% 11.16% 12.03% 13.30% 10.79% 13.09% 8.72% 12.65% 6.35% 12.12% 13.63% 13.31%
Interest expense -1.06 -1.08 -1.15 -1.15 -1.03 -1.12 -0.83 -0.52 -0.27 -0.44 -0.47 -0.47 -0.46 -0.50 -0.49 -0.60 -0.46 -0.39 -0.45 -0.47 -0.53
Other income, net 16.51 0.87 0.30 0.59 1.06 0.81 0.59 -0.12 -0.14 0.77 0.62 1.19 0.02 0.60 0.80 1.27 0.88 0.56 1.42 0.84 1.30
Income before income taxes 26.43% -14.40% 10.41% 10.99% 12.17% 10.01% 8.29% 12.98% 9.05% 8.79% 11.31% 12.75% 12.85% 10.89% 13.40% 9.40% 13.07% 6.51% 13.09% 14.00% 14.07%
Income tax expense -2.30 -1.91 -2.23 -2.45 -2.64 -1.72 -2.71 -2.25 -2.43 -1.95 -2.25 -2.73 -2.82 -2.14 -3.56 -2.41 -2.53 -1.17 -2.41 -2.99 -2.93
Consolidated net income 24.13% -16.31% 8.18% 8.53% 9.54% 8.29% 5.58% 10.73% 6.62% 6.84% 9.07% 10.01% 10.03% 8.75% 9.85% 6.98% 10.54% 5.34% 10.68% 11.01% 11.14%
Net (income) loss attributable to noncontrolling interests -0.42 -0.44 -0.40 -0.20 -0.19 -0.17 -0.12 -0.08 -0.08 -0.10 -0.12 -0.20 -0.13 -0.15 -0.06 0.18 -0.34 0.04 0.10 -0.16 -0.10
Net income attributable to Cummins Inc. 23.72% -16.75% 7.78% 8.34% 9.35% 8.12% 5.45% 10.66% 6.55% 6.74% 8.95% 9.82% 9.90% 8.59% 9.79% 7.17% 10.20% 5.38% 10.78% 10.85% 11.04%

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The financial performance over the analyzed period demonstrates a generally stable operational structure characterized by consistent margins, interrupted by significant non-recurring volatility in the final two quarters of the data set. Operating expenses as a percentage of net sales remained relatively disciplined, while gross margins fluctuated within a predictable range before experiencing extreme deviations due to non-operating items.

Gross Margin Trends
Gross margins typically fluctuated between 22% and 26%. A periodic compression is observed, with notable lows in December 2019 (23.54%), June 2020 (23.10%), and September 2022 (22.39%). Despite these dips, the cost of sales generally maintained a corridor between 73% and 77% of net sales, suggesting a consistent relationship between revenue and direct production costs.
Operating Expense Management
Selling, general, and administrative (SG&A) expenses remained largely stable, typically ranging from 9% to 11% of net sales, with a peak of 12.20% in June 2020. Research, development, and engineering expenses showed high consistency, consistently representing between 4% and 5% of net sales, indicating a steady commitment to innovation regardless of quarterly revenue fluctuations.
Operating Income Stability
Operating income margins remained resilient for the majority of the period, generally holding between 8% and 13%. However, a severe anomaly occurred on December 31, 2023, where operating income plummeted to -14.19%. This was driven by a sharp spike in other operating expenses, which reached -24.11% of net sales, suggesting a substantial one-time charge or impairment.
Net Profitability and Non-Recurring Items
Consolidated net income typically ranged from 5% to 11% of net sales. The volatility observed in late 2023 and early 2024 is stark; net income attributable to the company dropped to -16.75% in December 2023, only to surge to 23.72% by March 31, 2024. This recovery was primarily fueled by a significant increase in other income, net, which rose to 16.51% of net sales in the final quarter, indicating the impact of a major non-operating gain.
Financial Obligations
A gradual upward trend in interest expense is observable. Early in the period (2019), interest expenses represented approximately 0.4% to 0.5% of net sales. By 2022 and 2023, this figure increased to a range of 0.8% to 1.1%, reflecting either an increase in total debt levels or a rise in the prevailing cost of borrowing.

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