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.

Return on Assets (ROA)
since 2005

Microsoft Excel

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Calculation

Cummins Inc., ROA, long-term trends, calculation

Microsoft Excel
ROA = 100 × Net income attributable to Cummins Inc.1 ÷ Total assets1
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Dec 31, 2005 = 100 × ÷

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

Net Income Attributable to Cummins Inc.
The net income exhibited fluctuation over the analyzed period. Starting at 550 million USD in 2005, it showed a general upward trend with notable increases reaching a peak of 2260 million USD in 2019. Significant declines were observed in 2009, dropping to 428 million USD, and again after 2019, reaching 735 million USD in 2023. The period between 2010 and 2021 was marked by relatively high and stable net income figures, often exceeding 1000 million USD, with occasional peaks above 2000 million USD.
Total Assets
Total assets steadily increased throughout the period, starting at 6885 million USD in 2005 and consistently growing to reach 32005 million USD by 2023. This growth indicates ongoing expansion and asset accumulation without any periods of decline, reflecting a progressive enhancement of the company's asset base.
Return on Assets (ROA)
ROA, expressed as a percentage, demonstrated considerable variability. Initial values ranged around 8-10% from 2005 to 2008, followed by a sharp dip to 4.85% in 2009, coinciding with the drop in net income that year. Subsequently, ROA rose again to a peak of 15.84% in 2011, before gradually declining to single digits in the following years. From 2014 onward, ROA generally fluctuated between approximately 5% and 11%, indicating moderate profitability relative to assets. The most recent data shows a sharp decrease to 2.3% in 2023, reflecting reduced efficiency in generating earnings from the asset base.
Overall Analysis
The financial trends indicate that while total assets have grown substantially, net income and ROA have experienced periods of volatility, including notable declines during economic stress periods such as 2009 and more recently in 2023. The growth in assets suggests investment and expansion efforts, whereas fluctuations in net income and ROA point to challenges in maintaining consistent profitability relative to the asset base. The divergence between asset growth and declining profitability ratios in recent years may warrant further examination to assess operational efficiency and strategic positioning.

Comparison to Competitors

Cummins Inc., ROA, long-term trends, comparison to competitors

Microsoft Excel
Cummins Inc. Boeing Co. Caterpillar Inc. Eaton Corp. plc GE Aerospace Honeywell International 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).

Comparison to Sector (Capital Goods)

Cummins Inc., ROA, long-term trends, comparison to sector (capital goods)

Microsoft Excel
Cummins Inc. Capital Goods
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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).

Comparison to Industry (Industrials)

Cummins Inc., ROA, long-term trends, comparison to industry (industrials)

Microsoft Excel
Cummins Inc. Industrials
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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).