Total Asset Turnover
since 2005
Calculation
Cummins Inc., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Net sales1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Dec 31, 2023 | 1.06 | = | 34,065) | ÷ | 32,005) |
| Dec 31, 2022 | 0.93 | = | 28,074) | ÷ | 30,299) |
| Dec 31, 2021 | 1.01 | = | 24,021) | ÷ | 23,710) |
| Dec 31, 2020 | 0.88 | = | 19,811) | ÷ | 22,624) |
| Dec 31, 2019 | 1.19 | = | 23,571) | ÷ | 19,737) |
| Dec 31, 2018 | 1.25 | = | 23,771) | ÷ | 19,062) |
| Dec 31, 2017 | 1.13 | = | 20,428) | ÷ | 18,075) |
| Dec 31, 2016 | 1.17 | = | 17,509) | ÷ | 15,011) |
| Dec 31, 2015 | 1.26 | = | 19,110) | ÷ | 15,134) |
| Dec 31, 2014 | 1.22 | = | 19,221) | ÷ | 15,776) |
| Dec 31, 2013 | 1.17 | = | 17,301) | ÷ | 14,728) |
| Dec 31, 2012 | 1.38 | = | 17,334) | ÷ | 12,548) |
| Dec 31, 2011 | 1.55 | = | 18,048) | ÷ | 11,668) |
| Dec 31, 2010 | 1.27 | = | 13,226) | ÷ | 10,402) |
| Dec 31, 2009 | 1.23 | = | 10,800) | ÷ | 8,816) |
| Dec 31, 2008 | 1.68 | = | 14,342) | ÷ | 8,519) |
| Dec 31, 2007 | 1.59 | = | 13,048) | ÷ | 8,195) |
| Dec 31, 2006 | 1.52 | = | 11,362) | ÷ | 7,465) |
| Dec 31, 2005 | 1.44 | = | 9,918) | ÷ | 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).
1 US$ in millions
The long-term trajectory of total asset turnover reflects a general decline in asset efficiency despite a substantial increase in absolute net sales. While net sales grew from US$ 9,918 million in 2005 to US$ 34,065 million in 2023, the expansion of the total asset base outpaced revenue growth over the extended period, resulting in a compression of the turnover ratio.
- Initial Growth and Efficiency Peak
- From 2005 to 2008, a positive trend in asset utilization is observed, with the turnover ratio rising steadily from 1.44 to a peak of 1.68. This period represents the highest level of operational efficiency in the dataset, where sales growth effectively leveraged the existing asset base.
- Volatility and Mid-Term Stabilization
- A significant contraction occurred in 2009, with the ratio dropping to 1.23, coinciding with a sharp decline in net sales. Between 2010 and 2016, the ratio exhibited volatility, recovering to 1.55 in 2011 before entering a gradual decline toward 1.17. This phase indicates a period of fluctuating demand and adjustments in asset scaling.
- Asset Intensification and Recent Performance
- From 2017 to 2023, a sustained downward shift in turnover is evident. The ratio fell below the 1.00 threshold in 2020, reaching a period low of 0.88. This decline occurred despite net sales reaching historic highs, suggesting that the growth in total assets—which increased from US$ 18,075 million in 2017 to US$ 32,005 million in 2023—has outstripped the company's ability to generate proportional sales increases. A modest recovery to 1.06 was recorded in 2023, following a significant surge in net sales to US$ 34,065 million.
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Comparison to Competitors
Cummins Inc., total asset turnover, 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 | 1.06 | 0.57 | 0.73 | 0.60 | 0.40 | 0.60 | 1.29 | 0.43 |
| Dec 31, 2022 | 0.93 | 0.49 | 0.69 | 0.59 | 0.39 | 0.57 | 1.25 | 0.42 |
| Dec 31, 2021 | 1.01 | 0.45 | 0.58 | 0.58 | 0.36 | 0.53 | 1.32 | 0.40 |
| Dec 31, 2020 | 0.88 | 0.38 | 0.50 | 0.56 | 0.29 | 0.51 | 1.29 | 0.35 |
| Dec 31, 2019 | 1.19 | 0.57 | 0.65 | 0.65 | 0.33 | 0.63 | 1.26 | 0.55 |
| Dec 31, 2018 | 1.25 | 0.86 | 0.66 | 0.70 | 0.37 | 0.72 | 1.20 | 0.50 |
| Dec 31, 2017 | 1.13 | 1.01 | 0.55 | 0.63 | 0.30 | 0.68 | 1.10 | 0.62 |
| Dec 31, 2016 | 1.17 | 1.05 | 0.48 | 0.65 | 0.30 | 0.73 | 0.99 | 0.64 |
| Dec 31, 2015 | 1.26 | 1.02 | 0.56 | 0.67 | 0.21 | 0.78 | 0.94 | 0.64 |
| Dec 31, 2014 | 1.22 | 0.91 | 0.62 | 0.67 | 0.16 | 0.89 | 1.23 | 0.71 |
| Dec 31, 2013 | 1.17 | 0.93 | 0.62 | 0.62 | 0.15 | 0.86 | 1.25 | 0.69 |
| Dec 31, 2012 | 1.38 | 0.92 | 0.71 | 0.46 | 0.15 | 0.90 | 1.22 | 0.65 |
| Dec 31, 2011 | 1.55 | 0.86 | 0.70 | 0.90 | 0.13 | 0.92 | 1.23 | 0.95 |
| Dec 31, 2010 | 1.27 | 0.94 | 0.62 | 0.79 | 0.13 | 0.88 | 1.31 | 0.93 |
| Dec 31, 2009 | 1.23 | 1.10 | 0.49 | 0.73 | 0.13 | 0.86 | 1.29 | 0.94 |
| Dec 31, 2008 | 1.68 | 1.13 | 0.71 | 0.92 | 0.14 | 1.03 | 1.28 | 1.03 |
| Dec 31, 2007 | 1.59 | 1.13 | 0.75 | 0.97 | 0.13 | 1.02 | 1.45 | 0.99 |
| Dec 31, 2006 | 1.52 | 1.19 | 0.76 | 1.08 | 0.14 | 1.01 | 1.40 | 1.00 |
| Dec 31, 2005 | 1.44 | 0.91 | 0.72 | 1.09 | 0.14 | 0.86 | 1.34 | 0.92 |
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., total asset turnover, long-term trends, comparison to sector (capital goods)
| Cummins Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2023 | 1.06 | 0.57 |
| Dec 31, 2022 | 0.93 | 0.54 |
| Dec 31, 2021 | 1.01 | 0.50 |
| Dec 31, 2020 | 0.88 | 0.43 |
| Dec 31, 2019 | 1.19 | 0.54 |
| Dec 31, 2018 | 1.25 | 0.58 |
| Dec 31, 2017 | 1.13 | 0.54 |
| Dec 31, 2016 | 1.17 | 0.54 |
| Dec 31, 2015 | 1.26 | 0.46 |
| Dec 31, 2014 | 1.22 | 0.41 |
| Dec 31, 2013 | 1.17 | 0.39 |
| Dec 31, 2012 | 1.38 | 0.38 |
| Dec 31, 2011 | 1.55 | 0.36 |
| Dec 31, 2010 | 1.27 | 0.34 |
| Dec 31, 2009 | 1.23 | 0.33 |
| Dec 31, 2008 | 1.68 | 0.35 |
| Dec 31, 2007 | 1.59 | 0.34 |
| Dec 31, 2006 | 1.52 | 0.36 |
| Dec 31, 2005 | 1.44 | 0.33 |
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., total asset turnover, long-term trends, comparison to industry (industrials)
| Cummins Inc. | Industrials | |
|---|---|---|
| Dec 31, 2023 | 1.06 | 0.67 |
| Dec 31, 2022 | 0.93 | 0.66 |
| Dec 31, 2021 | 1.01 | 0.58 |
| Dec 31, 2020 | 0.88 | 0.50 |
| Dec 31, 2019 | 1.19 | 0.62 |
| Dec 31, 2018 | 1.25 | 0.67 |
| Dec 31, 2017 | 1.13 | 0.62 |
| Dec 31, 2016 | 1.17 | 0.61 |
| Dec 31, 2015 | 1.26 | 0.54 |
| Dec 31, 2014 | 1.22 | 0.49 |
| Dec 31, 2013 | 1.17 | 0.47 |
| Dec 31, 2012 | 1.38 | 0.46 |
| Dec 31, 2011 | 1.55 | 0.45 |
| Dec 31, 2010 | 1.27 | 0.41 |
| Dec 31, 2009 | 1.23 | 0.39 |
| Dec 31, 2008 | 1.68 | 0.43 |
| Dec 31, 2007 | 1.59 | 0.41 |
| Dec 31, 2006 | 1.52 | 0.43 |
| Dec 31, 2005 | 1.44 | 0.40 |
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).