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 analysis of the financial data reveals several notable trends and patterns over the examined periods.
- Net Sales
- Net sales have generally exhibited an upward trajectory with fluctuations aligned to economic and industry cycles. From 2005 to 2008, net sales increased steadily from $9,918 million to $14,342 million, indicating strong growth. However, a significant decline occurred in 2009, dropping to $10,800 million, likely reflecting the global economic downturn during that period. A robust recovery followed, marked by a consistent increase peaking at $23,771 million in 2018. Subsequently, net sales stabilized around the $23 billion mark through 2019, then saw a decline to $19,811 million in 2020, arguably impacted by global disruptions. Following this dip, a vigorous rebound led to $34,065 million by 2023, demonstrating substantial growth and strong market performance in the latest years.
- Total Assets
- Total assets displayed steady growth throughout the observed periods, rising from $6,885 million in 2005 to $32,005 million in 2023. This growth reflects ongoing asset accumulation, investment, and expansion activities. Notable increases are evident post-2010, with assets steadily increasing year-over-year, suggesting strategic capital deployments or possibly acquisitions. The asset base nearly quintupled over the 18-year span, indicating a significant scaling of operational capacity or investment in infrastructure and resources.
- Total Asset Turnover
- The total asset turnover ratio, which measures the efficiency in using assets to generate sales, showed variation across the years. Initially, the ratio improved from 1.44 in 2005 to a peak of 1.68 in 2008, reflecting increased efficiency. However, it sharply declined in 2009 to 1.23, coinciding with the drop in sales during the economic downturn. Between 2010 and 2019, the ratio hovered around 1.1 to 1.3, indicating moderate efficiency with some fluctuations. A notable decline occurred in 2020, reaching a low of 0.88, corresponding with lower sales relative to assets during that challenging year. While there was some recovery to 1.06 by 2023, the ratio remains below the pre-2009 peak, suggesting that asset utilization efficiency has not fully returned to previous high levels despite growth in sales and assets.
Overall, the data indicates sustained growth in sales and assets over the long term, punctuated by cyclical downturns that impacted both sales volume and asset utilization efficiency. The recent years reveal a strong recovery post-disruption, with increased sales outpacing asset growth, contributing to an upward trend in asset turnover since the low point in 2020. The patterns suggest effective management of growth and capacity, but also highlight areas for potential improvement in asset productivity to enhance overall operational efficiency.
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).