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 analysis of the financial data over the period from 2005 to 2023 reveals several noteworthy trends in net sales, operating income, and net income attributable to Cummins Inc.
- Net Sales
- Net sales showed a generally increasing trend, rising from approximately $9.9 billion in 2005 to over $34 billion in 2023. There were periodic fluctuations, notably a decline in 2009 which aligns with the global economic downturn, dropping from $14.3 billion in 2008 to $10.8 billion in 2009. Following this dip, sales recovered steadily, achieving significant growth particularly from 2016 onwards, culminating in a peak of $34.1 billion in 2023. This trajectory indicates strong revenue expansion over nearly two decades despite some volatility related to economic cycles.
- Operating Income
- Operating income generally trended upward from $894 million in 2005 to a peak of $2.9 billion in 2022, albeit with some irregularities. There was a sharp increase from 2009 ($682 million) to 2011 ($2.7 billion), highlighting improving operational efficiency or favorable market conditions. A noticeable drop occurred in 2015 and 2016, with operating income decreasing from $2.4 billion in 2014 to $1.9 billion in 2016. Although the figure rebounded reaching $2.9 billion in 2022, it then sharply declined to $1.76 billion in 2023, suggesting challenges impacting profitability in the most recent year. Overall, operating income growth was substantial over the long term but showed periods of contraction.
- Net Income Attributable to Cummins Inc.
- Net income followed a pattern similar to operating income, increasing from $550 million in 2005 to peak values in the early 2010s, particularly $2.26 billion in 2019. There were significant fluctuations, including a steep decline in 2017 to $999 million and a sharp drop in 2023 to $735 million after relatively high net income in preceding years. Despite these setbacks, the general trend over the period shows considerable growth in profitability since 2005. The volatility in net income may indicate exposure to variable market conditions, atypical costs, or other non-operational factors affecting bottom-line results.
In summary, the company demonstrated significant expansion in net sales and growth in profitability over the analyzed period, with clear evidence of resilience following economic downturns. However, recent years show increased volatility in operating and net income, suggesting emerging challenges that may require strategic focus to sustain profitability.
Balance Sheet: Assets
Cummins Inc., selected items from assets, long-term trends
US$ 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 data reflects the financial position of the company over a period spanning from 2005 to 2023, specifically focusing on current assets and total assets.
- Current Assets
-
The current assets demonstrated a generally upward trend throughout the period. Starting at $3,916 million in 2005, they increased steadily with some fluctuations, reaching $15,198 million in 2023. Notable growth occurred between 2009 and 2011, where current assets rose from $5,003 million to $7,091 million, indicating possible expansion or improved liquidity.
A minor decrease was observed between 2013 and 2015, dropping from $8,639 million to $7,947 million, which may suggest a short term decline in liquid resources or changes in working capital management. Post-2015, the current assets resumed growth, with a significant rise seen from 2019 onwards, increasing from $9,387 million to $15,198 million by 2023, reflecting enhanced short-term financial strength.
- Total Assets
-
Total assets also indicated a consistent upward trajectory over the years. Beginning at $6,885 million in 2005, total assets increased to $32,005 million by 2023, representing substantial asset base growth. The increase from 2008 to 2011 was particularly marked, with total assets rising from $8,519 million to $11,668 million, potentially indicative of investment or acquisition activities.
Between 2013 and 2016, a slight decline is noted from $14,728 million to $15,011 million, representing a relatively stable asset base but with modest fluctuations. After 2016, total assets exhibit a robust increase, accelerating significantly from 2019 onward, reaching its peak in 2023. This strong growth phase could be associated with expansion strategies or capital investments accompanied by stronger operational performance.
- Comparative Insights
-
Both current and total assets follow a broadly similar growth pattern over the analyzed period, with current assets growing at a pace slightly exceeding the growth rate of total assets, especially in recent years. This suggests an improvement in the company's liquidity or a shift towards more liquid asset holdings relative to its total resources.
The periods of decline or stagnation appear to be short-term and are followed by recovery and significant growth, suggesting effective management strategies to overcome temporary challenges. Overall, the data indicates a solid increase in asset base and liquidity strength, pointing to enhanced financial health and capacity for growth.
Balance Sheet: Liabilities and Stockholders’ Equity
Cummins Inc., selected items from liabilities and stockholders’ equity, long-term trends
US$ 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).
- Current Liabilities
- The current liabilities show a generally increasing trend over the period from 2005 to 2023. Starting at $2,218 million in 2005, they experienced fluctuations but overall rose substantially, reaching a peak of $12,903 million in 2023. Notably, the increase became more pronounced from 2016 onwards, with a sharp rise between 2021 and 2023, indicating a growing short-term financial obligation.
- Total Liabilities
- Total liabilities also display a rising trend over the years. From $4,796 million in 2005, there was some variability in the earlier years, but a consistent increase is observed from 2010 onward. The figure rose to over $22 billion by 2023. This increase suggests expanding long-term and possibly short-term debt obligations, reflecting growth or increased leverage.
- Total Debt
- Total debt presents a more irregular pattern with some periods of decline followed by significant increases. Beginning at $1,367 million in 2005, debt levels dropped until around 2007 and remained relatively stable until 2012. Afterward, a marked increase is visible, with debt rising sharply to a peak of $7,855 million in 2022 before decreasing slightly to $6,696 million in 2023. The surge in debt post-2012 indicates a strategic increase in borrowing, potentially for expansion or other capital needs.
- Total Shareholders’ Equity
- Shareholders’ equity showed strong growth from $1,864 million in 2005 to a peak near $8,975 million in 2022. This steady increase reflects accumulation of retained earnings and growth in net assets over time. However, equity slightly declined to $8,850 million in 2023, indicating a small reduction possibly due to net losses, dividends, or other equity transactions in that year.
- Overall Insights
- Across the examined period, liabilities and debt increased at a faster rate than equity, which could suggest growing reliance on external financing. The rapid growth in current liabilities and total debt after 2015 signals increased borrowing or operational liabilities that may impact liquidity. Meanwhile, although equity grew steadily, the slight decline in the final year warrants attention. The company appears to be expanding its leverage, which may enhance financial flexibility but also raises considerations about financial risk management going forward.
Cash Flow Statement
Cummins Inc., selected items from cash flow statement, long-term trends
US$ 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 operational cash flow demonstrates a generally positive trend over the analyzed period, exhibiting growth from 760 million USD in 2005 to a peak of 3181 million USD in 2019. There are noticeable fluctuations, such as a drop to 1006 million USD in 2010 following relatively stable years and a decline after 2019 down to 1962 million USD in 2022. The year 2023 shows a significant rebound to 3966 million USD, marking the highest value in the series, indicating strong operational performance.
The investing activities display a consistent pattern of cash outflows throughout the years, indicating sustained investment activity. The outflow starts at 212 million USD in 2005, escalates to a peak of 848 million USD in 2008, then fluctuates with another notable increase in 2022 reaching 4172 million USD. Despite some yearly variations, the overall trend suggests ongoing capital expenditures or acquisitions. The large outflows in recent years highlight expanded investment efforts or strategic capital deployment.
Financing activities show mixed movement with both cash inflows and outflows, reflecting changing financial strategies. Early years show moderate outflows, such as -372 million USD in 2005, deepening at various points, including a peak outflow of -2095 million USD in 2019. Noteworthy are the positive inflows in 2019 (280 million USD) and 2021 (1669 million USD), suggesting occasional raising of funds possibly through debt or equity. The significant outflow in 2023 (-2177 million USD) indicates a return to reducing financial liabilities or paying dividends.
Overall, operating cash flows generally increase over time with some volatility, investing cash flows remain predominantly negative reflecting continuous investment, and financing cash flows alternate reflecting dynamic funding and repayment activities. The substantial 2023 operational cash increase combined with noteworthy financing outflows could imply a strategic shift towards internal funding of operations or returning value to stakeholders.
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.
The analysis of the financial metrics over the indicated periods reveals several notable trends in earnings and dividend distributions.
- Basic Earnings Per Share (EPS)
- The basic EPS shows an overall upward trajectory from 2005 through 2019, starting at 3.11 US dollars and reaching a peak of 14.54 US dollars in 2019. There are fluctuations within this range, including a decline in 2009 to 2.17 US dollars, likely reflecting economic downturns or company-specific challenges during that period. After 2010, the EPS steadily increased to a high of 15.2 US dollars in 2022, before experiencing a significant reduction to 5.19 US dollars in 2023. This recent decline represents a major deviation from the previously established upward trend.
- Diluted Earnings Per Share
- The diluted EPS follows a very similar pattern to the basic EPS, indicating consistency in earnings per share metrics irrespective of dilution effects. Starting from 2.75 US dollars in 2005, it rises to a peak of 15.12 US dollars in 2022, then sharply drops to 5.15 US dollars in 2023. The close alignment between basic and diluted EPS suggests limited dilution over the periods considered.
- Dividend Per Share
- Dividend payments per share indicate a consistent and steady increase throughout the entire period, beginning at 0.3 US dollars in 2005 and reaching 6.5 US dollars by 2023. This steady growth reflects a commitment to returning value to shareholders despite fluctuations in earnings, including the notable drop in EPS in 2023. The dividend growth rate appears stable even when earnings experienced volatility, which may signal confidence in the company’s long-term cash flow generation capabilities.
In summary, earnings per share grew substantially over most of the period, with a sharp decline noted in the final year. Meanwhile, dividends per share increased consistently, reflecting a stable and rising commitment to shareholder returns that was not significantly impacted by the earnings downturn. This divergence in trends between dividends and earnings in the most recent year could warrant further investigation into cash flow management and profit sustainability.