Net Profit Margin
since 2005
Calculation
Cummins Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income attributable to Cummins Inc.1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 2.16% | = | 100 | × | 735) | ÷ | 34,065) |
| Dec 31, 2022 | 7.66% | = | 100 | × | 2,151) | ÷ | 28,074) |
| Dec 31, 2021 | 8.87% | = | 100 | × | 2,131) | ÷ | 24,021) |
| Dec 31, 2020 | 9.03% | = | 100 | × | 1,789) | ÷ | 19,811) |
| Dec 31, 2019 | 9.59% | = | 100 | × | 2,260) | ÷ | 23,571) |
| Dec 31, 2018 | 9.01% | = | 100 | × | 2,141) | ÷ | 23,771) |
| Dec 31, 2017 | 4.89% | = | 100 | × | 999) | ÷ | 20,428) |
| Dec 31, 2016 | 7.96% | = | 100 | × | 1,394) | ÷ | 17,509) |
| Dec 31, 2015 | 7.32% | = | 100 | × | 1,399) | ÷ | 19,110) |
| Dec 31, 2014 | 8.59% | = | 100 | × | 1,651) | ÷ | 19,221) |
| Dec 31, 2013 | 8.57% | = | 100 | × | 1,483) | ÷ | 17,301) |
| Dec 31, 2012 | 9.49% | = | 100 | × | 1,645) | ÷ | 17,334) |
| Dec 31, 2011 | 10.24% | = | 100 | × | 1,848) | ÷ | 18,048) |
| Dec 31, 2010 | 7.86% | = | 100 | × | 1,040) | ÷ | 13,226) |
| Dec 31, 2009 | 3.96% | = | 100 | × | 428) | ÷ | 10,800) |
| Dec 31, 2008 | 5.26% | = | 100 | × | 755) | ÷ | 14,342) |
| Dec 31, 2007 | 5.66% | = | 100 | × | 739) | ÷ | 13,048) |
| Dec 31, 2006 | 6.29% | = | 100 | × | 715) | ÷ | 11,362) |
| Dec 31, 2005 | 5.55% | = | 100 | × | 550) | ÷ | 9,918) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial performance from 2005 to 2023 is characterized by a substantial increase in top-line revenue accompanied by significant volatility in net profitability. While net sales grew from US$ 9,918 million in 2005 to a peak of US$ 34,065 million in 2023, net income did not follow a linear growth path, ending the period at US$ 735 million.
- Revenue Trajectory
- A long-term expansion in net sales is evident, with total revenue more than tripling over the nineteen-year period. Growth was generally consistent, though interrupted by notable contractions in 2009 and 2020, reflecting susceptibility to global macroeconomic shocks. Each decline was followed by a recovery that exceeded previous peaks.
- Net Profit Margin Fluctuations
- The net profit margin experienced several distinct cycles. Between 2005 and 2008, margins remained stable within the 5.26% to 6.29% range. A significant dip to 3.96% occurred in 2009, followed by a period of margin expansion that peaked at 10.24% in 2011. For much of the period between 2010 and 2016, profitability remained robust, typically staying above 7%.
- Profitability Volatility and Recent Decline
- A sharp, isolated decline in the net profit margin to 4.89% was observed in 2017, followed by a recovery to levels between 8.87% and 9.59% from 2018 to 2021. However, a severe downward trend emerged in the final two years. The margin dropped to 7.66% in 2022 and contracted sharply to 2.16% in 2023.
- Revenue and Profit Divergence
- A critical divergence is observed in 2023, where the highest recorded net sales of US$ 34,065 million coincided with one of the lowest net profit margins in the dataset. This indicates that the increase in scale did not translate into proportional earnings, suggesting a significant rise in expenses or one-time losses that heavily impacted the bottom line.
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Comparison to Competitors
Cummins Inc., net profit margin, long-term trends, comparison to competitors
| Cummins Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 2.16% | -2.86% | 16.18% | 13.87% | 14.68% | 15.43% | 10.24% | 4.64% |
| Dec 31, 2022 | 7.66% | -7.41% | 11.85% | 11.86% | 0.31% | 14.00% | 8.69% | 7.75% |
| Dec 31, 2021 | 8.87% | -6.75% | 13.47% | 10.92% | -9.17% | 16.11% | 9.42% | 6.00% |
| Dec 31, 2020 | 9.03% | -20.42% | 7.68% | 7.90% | 7.81% | 14.64% | 10.45% | -6.22% |
| Dec 31, 2019 | 9.59% | -0.83% | 12.00% | 10.34% | -5.69% | 16.73% | 10.42% | 7.19% |
| Dec 31, 2018 | 9.01% | 10.34% | 11.86% | 9.93% | -19.69% | 16.18% | 9.39% | 7.92% |
| Dec 31, 2017 | 4.89% | 8.78% | 1.77% | 14.63% | -5.11% | 4.08% | 3.92% | 7.61% |
| Dec 31, 2016 | 7.96% | 5.18% | -0.19% | 9.73% | 8.00% | 12.24% | 11.22% | 8.83% |
| Dec 31, 2015 | 7.32% | 5.39% | 4.76% | 9.49% | -5.79% | 12.36% | 7.81% | 13.56% |
| Dec 31, 2014 | 8.59% | 6.00% | 7.09% | 7.95% | 14.27% | 10.52% | 7.93% | 9.55% |
| Dec 31, 2013 | 8.57% | 5.29% | 7.19% | 8.44% | 12.99% | 10.05% | 6.57% | 9.14% |
| Dec 31, 2012 | 9.49% | 4.77% | 9.01% | 7.46% | 13.62% | 7.77% | 5.82% | 8.89% |
| Dec 31, 2011 | 10.24% | 5.85% | 8.59% | 8.41% | 14.97% | 5.66% | 5.71% | 8.56% |
| Dec 31, 2010 | 7.86% | 5.14% | 6.77% | 6.77% | 11.59% | 6.06% | 6.39% | 8.05% |
| Dec 31, 2009 | 3.96% | 1.92% | 3.03% | 3.23% | 10.62% | 6.97% | 6.69% | 7.30% |
| Dec 31, 2008 | 5.26% | 4.39% | 7.40% | 6.88% | 15.44% | 7.64% | 7.53% | 8.08% |
| Dec 31, 2007 | 5.66% | 6.14% | 8.44% | 7.63% | 22.31% | 7.07% | 7.25% | 7.83% |
| Dec 31, 2006 | 6.29% | 3.60% | 9.10% | 7.68% | 20.68% | 6.64% | 6.38% | 7.92% |
| Dec 31, 2005 | 5.55% | 4.69% | 8.39% | 7.24% | 17.66% | 5.98% | 4.90% | 7.26% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
Cummins Inc., net profit margin, long-term trends, comparison to sector (capital goods)
| Cummins Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2023 | 2.16% | 9.09% |
| Dec 31, 2022 | 7.66% | 5.27% |
| Dec 31, 2021 | 8.87% | 3.71% |
| Dec 31, 2020 | 9.03% | 1.85% |
| Dec 31, 2019 | 9.59% | 5.03% |
| Dec 31, 2018 | 9.01% | 2.99% |
| Dec 31, 2017 | 4.89% | 3.41% |
| Dec 31, 2016 | 7.96% | 7.61% |
| Dec 31, 2015 | 7.32% | 4.69% |
| Dec 31, 2014 | 8.59% | 9.51% |
| Dec 31, 2013 | 8.57% | 8.78% |
| Dec 31, 2012 | 9.49% | 8.73% |
| Dec 31, 2011 | 10.24% | 9.04% |
| Dec 31, 2010 | 7.86% | 7.93% |
| Dec 31, 2009 | 3.96% | 6.61% |
| Dec 31, 2008 | 5.26% | 9.45% |
| Dec 31, 2007 | 5.66% | 11.53% |
| Dec 31, 2006 | 6.29% | 10.82% |
| Dec 31, 2005 | 5.55% | 9.72% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Cummins Inc., net profit margin, long-term trends, comparison to industry (industrials)
| Cummins Inc. | Industrials | |
|---|---|---|
| Dec 31, 2023 | 2.16% | 8.32% |
| Dec 31, 2022 | 7.66% | 5.04% |
| Dec 31, 2021 | 8.87% | 5.85% |
| Dec 31, 2020 | 9.03% | 0.09% |
| Dec 31, 2019 | 9.59% | 4.11% |
| Dec 31, 2018 | 9.01% | 4.75% |
| Dec 31, 2017 | 4.89% | 5.79% |
| Dec 31, 2016 | 7.96% | 7.43% |
| Dec 31, 2015 | 7.32% | 6.48% |
| Dec 31, 2014 | 8.59% | 8.76% |
| Dec 31, 2013 | 8.57% | 8.23% |
| Dec 31, 2012 | 9.49% | 7.39% |
| Dec 31, 2011 | 10.24% | 8.26% |
| Dec 31, 2010 | 7.86% | 7.48% |
| Dec 31, 2009 | 3.96% | 5.76% |
| Dec 31, 2008 | 5.26% | 7.27% |
| Dec 31, 2007 | 5.66% | 9.56% |
| Dec 31, 2006 | 6.29% | 14.87% |
| Dec 31, 2005 | 5.55% | 3.55% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).