Selected Financial Data
since 2005
Income Statement
Cummins Inc., selected items from income statement, long-term trends
US$ in millions
| 12 months ended: | Net sales | Operating income | Net income attributable to Cummins Inc. |
|---|---|---|---|
| Dec 31, 2023 | 34,065) | 1,761) | 735) |
| Dec 31, 2022 | 28,074) | 2,929) | 2,151) |
| Dec 31, 2021 | 24,021) | 2,706) | 2,131) |
| Dec 31, 2020 | 19,811) | 2,269) | 1,789) |
| Dec 31, 2019 | 23,571) | 2,700) | 2,260) |
| Dec 31, 2018 | 23,771) | 2,786) | 2,141) |
| Dec 31, 2017 | 20,428) | 2,365) | 999) |
| Dec 31, 2016 | 17,509) | 1,928) | 1,394) |
| Dec 31, 2015 | 19,110) | 2,057) | 1,399) |
| Dec 31, 2014 | 19,221) | 2,365) | 1,651) |
| Dec 31, 2013 | 17,301) | 2,101) | 1,483) |
| Dec 31, 2012 | 17,334) | 2,254) | 1,645) |
| Dec 31, 2011 | 18,048) | 2,681) | 1,848) |
| Dec 31, 2010 | 13,226) | 1,602) | 1,040) |
| Dec 31, 2009 | 10,800) | 682) | 428) |
| Dec 31, 2008 | 14,342) | 1,272) | 755) |
| Dec 31, 2007 | 13,048) | 1,158) | 739) |
| Dec 31, 2006 | 11,362) | 1,131) | 715) |
| Dec 31, 2005 | 9,918) | 894) | 550) |
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).
The long-term financial trajectory of the organization is characterized by substantial growth in top-line revenue, accompanied by significant volatility in operational efficiency and bottom-line profitability over the period from 2005 to 2023.
- Revenue Growth and Volatility
- Net sales grew from 9,918 million US dollars in 2005 to 34,065 million US dollars by 2023. This expansion was marked by two distinct cyclical contractions: a sharp decline in 2009 to 10,800 million US dollars and a second drop in 2020 to 19,811 million US dollars. Following the 2020 downturn, a period of aggressive growth is observed, with net sales increasing for three consecutive years to reach an all-time peak in 2023.
- Operating Performance
- Operating income exhibited a general upward trend from 2005 until a peak of 2,681 million US dollars in 2011. Between 2012 and 2022, operating income remained relatively stable, generally fluctuating between 1,900 million and 2,900 million US dollars. A significant anomaly occurred in 2023, where operating income fell to 1,761 million US dollars despite the record high in net sales, indicating a substantial compression of operating margins in the final year of the sequence.
- Net Income and Profitability Trends
- Net income attributable to the company generally followed the trajectory of operating income, reaching a high of 2,260 million US dollars in 2019. However, a stark divergence is evident in 2023; while net sales reached their highest historical level, net income plummeted to 735 million US dollars. This figure represents the lowest level of net profitability since 2009, suggesting that the growth in revenue during 2023 was decoupled from bottom-line performance due to increased expenses or one-time losses.
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Balance Sheet: Assets
Cummins Inc., selected items from assets, long-term trends
US$ in millions
| Current assets | Total assets | |
|---|---|---|
| Dec 31, 2023 | 15,198) | 32,005) |
| Dec 31, 2022 | 14,451) | 30,299) |
| Dec 31, 2021 | 12,309) | 23,710) |
| Dec 31, 2020 | 11,897) | 22,624) |
| Dec 31, 2019 | 9,387) | 19,737) |
| Dec 31, 2018 | 9,818) | 19,062) |
| Dec 31, 2017 | 8,928) | 18,075) |
| Dec 31, 2016 | 7,707) | 15,011) |
| Dec 31, 2015 | 7,947) | 15,134) |
| Dec 31, 2014 | 9,055) | 15,776) |
| Dec 31, 2013 | 8,639) | 14,728) |
| Dec 31, 2012 | 7,167) | 12,548) |
| Dec 31, 2011 | 7,091) | 11,668) |
| Dec 31, 2010 | 6,289) | 10,402) |
| Dec 31, 2009 | 5,003) | 8,816) |
| Dec 31, 2008 | 4,713) | 8,519) |
| Dec 31, 2007 | 4,815) | 8,195) |
| Dec 31, 2006 | 4,488) | 7,465) |
| Dec 31, 2005 | 3,916) | 6,885) |
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).
The asset base of the organization has experienced substantial long-term growth between 2005 and 2023. Total assets increased from 6,885 million USD to 32,005 million USD, representing a nearly 4.6-fold expansion over the observed period. This growth trajectory is characterized by steady incremental increases punctuated by periods of accelerated expansion, particularly in the latter half of the timeline.
- Current Asset Trends
- Current assets grew from 3,916 million USD in 2005 to 15,198 million USD in 2023. A consistent upward trend was maintained until 2014, reaching 9,055 million USD. A brief period of contraction occurred between 2015 and 2016, where values dipped to 7,707 million USD, before resuming a strong growth phase. The most significant acceleration occurred between 2019 and 2023, where current assets rose from 9,387 million USD to 15,198 million USD.
- Total Asset Expansion
- Total assets followed a similar growth pattern to current assets, rising from 6,885 million USD in 2005 to 32,005 million USD in 2023. While the growth was steady through 2014, a plateau was observed during 2015 and 2016. From 2017 onwards, the rate of expansion accelerated significantly, with total assets increasing by approximately 77% between 2017 (18,075 million USD) and 2023 (32,005 million USD).
- Asset Composition and Liquidity Shift
- The proportion of current assets relative to total assets has evolved over the 18-year period. In 2005, current assets constituted approximately 56.9% of total assets. By 2023, this proportion decreased to approximately 47.5%. This indicates that while liquidity has increased in absolute terms, a larger share of the company's total investment has shifted toward non-current assets in recent years, suggesting increased capital expenditure or strategic acquisitions.
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Balance Sheet: Liabilities and Stockholders’ Equity
Cummins Inc., selected items from liabilities and stockholders’ equity, long-term trends
US$ in millions
| Current liabilities | Total liabilities | Total debt | Total Cummins Inc. shareholders’ equity | |
|---|---|---|---|---|
| Dec 31, 2023 | 12,903) | 22,101) | 6,696) | 8,850) |
| Dec 31, 2022 | 11,421) | 20,074) | 7,855) | 8,975) |
| Dec 31, 2021 | 7,084) | 14,309) | 4,159) | 8,474) |
| Dec 31, 2020 | 6,335) | 13,635) | 4,164) | 8,062) |
| Dec 31, 2019 | 6,260) | 11,272) | 2,367) | 7,507) |
| Dec 31, 2018 | 6,384) | 10,803) | 2,476) | 7,348) |
| Dec 31, 2017 | 5,677) | 9,911) | 2,006) | 7,259) |
| Dec 31, 2016 | 4,325) | 7,837) | 1,856) | 6,875) |
| Dec 31, 2015 | 3,803) | 7,384) | 1,639) | 7,406) |
| Dec 31, 2014 | 4,021) | 7,683) | 1,698) | 7,749) |
| Dec 31, 2013 | 3,368) | 6,858) | 1,740) | 7,510) |
| Dec 31, 2012 | 3,136) | 5,574) | 775) | 6,603) |
| Dec 31, 2011 | 3,657) | 5,837) | 783) | 5,492) |
| Dec 31, 2010 | 3,260) | 5,406) | 843) | 4,670) |
| Dec 31, 2009 | 2,432) | 4,796) | 704) | 3,773) |
| Dec 31, 2008 | 2,639) | 5,039) | 698) | 3,230) |
| Dec 31, 2007 | 2,711) | 4,493) | 674) | 3,409) |
| Dec 31, 2006 | 2,399) | 4,409) | 811) | 2,802) |
| Dec 31, 2005 | 2,218) | 4,796) | 1,367) | 1,864) |
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).
The financial position of the entity from 2005 to 2023 is characterized by a long-term expansion of the balance sheet, with a marked acceleration in liabilities during the final three years of the period. While shareholders' equity grew steadily for nearly two decades, a significant shift in the capital structure occurred after 2020, evidenced by a rapid increase in both total debt and current liabilities.
- Liability Trajectory and Composition
- Total liabilities exhibited a gradual upward trend from 2005 to 2020, rising from 4,796 million USD to 13,635 million USD. However, a substantial surge is observed between 2021 and 2023, where total liabilities climbed to 22,101 million USD. Current liabilities followed a similar pattern, showing a sharp escalation from 7,084 million USD in 2021 to 12,903 million USD by the end of 2023. This suggests a growing reliance on short-term financing or an increase in operational obligations toward the end of the observed period.
- Debt Dynamics
- Total debt remained relatively stable or grew modestly between 2005 and 2019, fluctuating between 674 million USD and 2,476 million USD. A pivot occurred in 2020, with debt increasing to 4,164 million USD. The most aggressive expansion occurred in 2022, when total debt peaked at 7,855 million USD, nearly doubling the previous year's levels, before moderating to 6,696 million USD in 2023.
- Shareholders' Equity Growth
- Equity demonstrated consistent long-term growth, increasing from 1,864 million USD in 2005 to a peak of 8,975 million USD in 2022. This steady accumulation indicates a prolonged period of retained earnings and capital strengthening. However, this growth trend plateaued in 2023, with a slight decrease to 8,850 million USD, coinciding with the period of highest total liabilities.
- Leverage and Solvency Observations
- The relationship between debt and equity shifted significantly over the 18-year span. In the mid-period (circa 2015), the entity maintained a conservative leverage profile with debt significantly lower than equity. By 2022, the gap narrowed considerably as total debt reached 7,855 million USD against equity of 8,975 million USD. The composition of total liabilities also shifted, with current liabilities representing a larger proportion of the total liability load in 2023 (approximately 58%) compared to 2005 (approximately 46%).
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Cash Flow Statement
Cummins Inc., selected items from cash flow statement, long-term trends
US$ in millions
| 12 months ended: | Net cash provided by operating activities | Net cash used in investing activities | Net cash provided by (used in) financing activities |
|---|---|---|---|
| Dec 31, 2023 | 3,966) | (1,643) | (2,177) |
| Dec 31, 2022 | 1,962) | (4,172) | 1,669) |
| Dec 31, 2021 | 2,256) | (873) | (2,227) |
| Dec 31, 2020 | 2,722) | (719) | 280) |
| Dec 31, 2019 | 3,181) | (1,150) | (2,095) |
| Dec 31, 2018 | 2,378) | (974) | (1,400) |
| Dec 31, 2017 | 2,277) | (1,052) | (1,074) |
| Dec 31, 2016 | 1,935) | (917) | (1,409) |
| Dec 31, 2015 | 2,059) | (918) | (1,644) |
| Dec 31, 2014 | 2,266) | (1,234) | (1,343) |
| Dec 31, 2013 | 2,089) | (846) | 52) |
| Dec 31, 2012 | 1,532) | (982) | (694) |
| Dec 31, 2011 | 2,073) | (552) | (1,025) |
| Dec 31, 2010 | 1,006) | (651) | (267) |
| Dec 31, 2009 | 1,137) | (509) | (141) |
| Dec 31, 2008 | 987) | (848) | (237) |
| Dec 31, 2007 | 810) | (515) | (576) |
| Dec 31, 2006 | 840) | (277) | (508) |
| Dec 31, 2005 | 760) | (212) | (372) |
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).
The overall cash flow profile demonstrates a long-term trajectory of growth in operational efficiency, punctuated by a significant strategic investment cycle and a strong recovery in liquidity toward the end of the period.
- Net Cash Provided by Operating Activities
- A consistent upward trend is observed in operating cash flows over the nineteen-year period. From 2005 to 2010, cash generation remained relatively stable, fluctuating between 760 million and 1,137 million US dollars. A significant step-up occurred in 2011, with cash flows doubling to 2,073 million US dollars. Following a period of stability between 2012 and 2018, a peak of 3,181 million US dollars was reached in 2019. Despite a temporary decline between 2020 and 2022, the period concludes with a record high of 3,966 million US dollars in 2023, indicating a substantial increase in the company's ability to generate cash from its core business operations.
- Net Cash Used in Investing Activities
- Investing activities remained consistently negative, reflecting continuous capital expenditure and strategic investments. For the majority of the period, outflows ranged between 212 million and 1,234 million US dollars. However, a profound outlier occurred in 2022, where net cash used in investing activities surged to 4,172 million US dollars. This extreme increase suggests a major acquisition or a massive expansion of fixed assets. By 2023, investing outflows moderated to 1,643 million US dollars, returning to a pattern more aligned with historical norms.
- Net Cash Provided by or Used in Financing Activities
- Financing activities were predominantly negative for most of the observed timeframe, indicating a general trend of debt repayment, dividend distributions, or share repurchases. Notable exceptions occurred in 2013, 2020, and 2022, where positive inflows were recorded. The positive inflow of 1,669 million US dollars in 2022 directly correlates with the peak in investing activities, suggesting that external financing was utilized to fund the significant investment expenditure of that year. In 2023, financing activities returned to a heavy outflow of 2,177 million US dollars, coinciding with the record high in operating cash flow, which likely enabled the company to reduce its leverage or increase shareholder returns.
The interaction between these three components reveals a robust financial position. The company has historically utilized its operating cash flows to fund its investment needs. The volatility observed in 2022 represents a coordinated shift where financing was leveraged to support an aggressive investment phase, followed by a strong operational rebound in 2023 that allowed for significant financing outflows.
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Per Share Data
Cummins Inc., selected data per share, long-term trends
US$
| 12 months ended: | Basic earnings per share 1 | Diluted earnings per share 2 | Dividend per share 3 |
|---|---|---|---|
| Dec 31, 2023 | 5.19 | 5.15 | 6.50 |
| Dec 31, 2022 | 15.20 | 15.12 | 6.04 |
| Dec 31, 2021 | 14.74 | 14.61 | 5.60 |
| Dec 31, 2020 | 12.07 | 12.01 | 5.28 |
| Dec 31, 2019 | 14.54 | 14.48 | 4.90 |
| Dec 31, 2018 | 13.20 | 13.15 | 4.44 |
| Dec 31, 2017 | 5.99 | 5.97 | 4.21 |
| Dec 31, 2016 | 8.25 | 8.23 | 4.00 |
| Dec 31, 2015 | 7.86 | 7.84 | 3.51 |
| Dec 31, 2014 | 9.04 | 9.02 | 2.81 |
| Dec 31, 2013 | 7.93 | 7.91 | 2.25 |
| Dec 31, 2012 | 8.69 | 8.67 | 1.80 |
| Dec 31, 2011 | 9.58 | 9.55 | 1.33 |
| Dec 31, 2010 | 5.29 | 5.28 | 0.88 |
| Dec 31, 2009 | 2.17 | 2.16 | 0.70 |
| Dec 31, 2008 | 3.87 | 3.84 | 0.60 |
| Dec 31, 2007 | 3.72 | 3.70 | 0.43 |
| Dec 31, 2006 | 3.76 | 3.55 | 0.33 |
| Dec 31, 2005 | 3.11 | 2.75 | 0.30 |
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, 2, 3 Data adjusted for splits and stock dividends.
Analysis of the per-share financial data reveals a significant divergence between earnings volatility and dividend distribution strategy over the period from 2005 to 2023. While earnings per share exhibited cyclical fluctuations and sharp declines, dividend payments maintained a consistent, uninterrupted upward trajectory.
- Earnings Per Share Trends
- Basic and diluted earnings per share followed a similar trajectory, characterized by three distinct phases. Initial stability was observed between 2005 and 2008, followed by a sharp contraction in 2009 where basic EPS fell to 2.17. A recovery phase ensued, with earnings peaking at 9.58 in 2011 before entering a period of fluctuation between 2012 and 2017. A second period of aggressive growth occurred from 2018 to 2022, reaching a peak basic EPS of 15.20. This growth was followed by a precipitous decline in 2023, with basic EPS dropping to 5.19.
- Dividend Distribution Patterns
- Dividend per share demonstrated a linear and disciplined growth pattern. Starting at 0.30 in 2005, the dividend increased every single year without exception, reaching 6.50 by 2023. This progression remained decoupled from the volatility seen in earnings, indicating a corporate policy focused on consistent shareholder returns regardless of short-term profitability swings.
- Earnings-to-Dividend Relationship
- The relationship between earnings and dividends shifted markedly over the analyzed timeframe. In the earlier years, dividends represented a small fraction of total earnings. However, as the dividend grew steadily and earnings fluctuated, the coverage ratio tightened. Most notably, in 2023, the dividend per share of 6.50 exceeded the basic earnings per share of 5.19, indicating that the dividend payout for that period surpassed the annual earnings generated per share.
- Dilution Impact
- The variance between basic and diluted earnings per share remained minimal throughout the entire period. The close proximity of these two figures suggests a limited impact from dilutive securities, such as stock options or convertible bonds, on the overall earnings per share profile.
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