Stock Analysis on Net
Stock Analysis on Net

Cummins Inc. (NYSE:CMI)

$22.49

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

Operating Profit Margin
since 2005

Microsoft Excel

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Calculation

Cummins Inc., operating profit margin, long-term trends, calculation

Microsoft Excel
Operating profit margin = 100 × Operating income1 ÷ Net sales1
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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 analysis of the financial data reveals several notable trends and fluctuations over the examined period.

Net Sales
Net sales demonstrate an overall upward trajectory from 2005 through 2023, increasing from approximately 9.9 billion USD in 2005 to over 34 billion USD in 2023. Despite occasional volatility, including dips observed around 2009 and 2016-2017, net sales have generally exhibited strong growth, reflecting expansion in revenue generation over nearly two decades.
Operating Income
Operating income shows a more variable pattern compared to net sales. Starting at 894 million USD in 2005, operating income peaked multiple times, notably in 2011 (2.7 billion USD) and 2018 (2.8 billion USD). However, there are periods of decline and recovery, such as the sharp drop in 2009 to 682 million USD, followed by significant increases thereafter. The decline in 2023 to 1.76 billion USD from 2.93 billion USD in 2022 highlights recent challenges affecting operating profitability.
Operating Profit Margin
The operating profit margin exhibits substantial fluctuations across the years. Early years showed margins around 9-10%, followed by a significant decrease in 2009 to approximately 6.3%. Subsequent years saw higher profitability with margins peaking near 14.85% in 2011. Post-2011, the margin generally stabilized between 10% and 12%, with a notable decline in 2023 to 5.17%, the lowest margin in the dataset, indicating decreased efficiency or increased costs relative to sales in the most recent year.

Overall, while net sales reflect steady growth and expansion, operating income and profit margins have experienced considerable volatility. The decline in profitability margins in recent years, especially in 2023, suggests potential operational challenges or market pressures despite sustained revenue growth. Monitoring cost management and operational efficiency will be crucial to improving future profitability. The data underscores the importance of aligning sales growth with improved profit margins to maintain financial health.

Comparison to Competitors

Cummins Inc., operating profit margin, long-term trends, comparison to competitors

Microsoft Excel
Cummins Inc. Boeing Co. Caterpillar Inc. Lockheed Martin Corp. RTX Corp.
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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).