Analysis of Geographic Areas
Cummins Inc. operates in 4 regions: United States; China; India; and Other international.
Area Asset Turnover
Cummins Inc., asset turnover by geographic area
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States | 3.85 | 3.30 | 3.14 | 2.81 | 3.80 |
| China | 3.02 | 2.27 | 2.79 | 2.80 | 2.61 |
| India | 2.46 | 2.09 | 1.98 | 1.14 | 1.38 |
| Other international | 3.61 | 3.72 | 4.49 | 3.68 | 4.49 |
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).
| Area activity ratio | Geographic area | The company |
|---|---|---|
| Area asset turnover | United States | United States area asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| China | China area asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. | |
| India | India area asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. | |
| Other international | Other international area asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Area Asset Turnover: United States
Cummins Inc.; United States; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 19,302) | 15,552) | 12,489) | 10,605) | 13,519) |
| Long-lived assets | 5,013) | 4,714) | 3,978) | 3,776) | 3,555) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 3.85 | 3.30 | 3.14 | 2.81 | 3.80 |
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).
1 2023 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 19,302 ÷ 5,013 = 3.85
| Area activity ratio | Geographic area | The company |
|---|---|---|
| Area asset turnover | United States | United States area asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Area Asset Turnover: China
Cummins Inc.; China; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 3,115) | 2,390) | 3,169) | 2,832) | 2,331) |
| Long-lived assets | 1,030) | 1,052) | 1,136) | 1,010) | 893) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 3.02 | 2.27 | 2.79 | 2.80 | 2.61 |
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).
1 2023 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 3,115 ÷ 1,030 = 3.02
| Area activity ratio | Geographic area | The company |
|---|---|---|
| Area asset turnover | China | China area asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Area Asset Turnover: India
Cummins Inc.; India; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 1,678) | 1,392) | 1,133) | 680) | 848) |
| Long-lived assets | 681) | 665) | 573) | 595) | 616) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 2.46 | 2.09 | 1.98 | 1.14 | 1.38 |
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).
1 2023 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 1,678 ÷ 681 = 2.46
| Area activity ratio | Geographic area | The company |
|---|---|---|
| Area asset turnover | India | India area asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Area Asset Turnover: Other international
Cummins Inc.; Other international; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 9,970) | 8,740) | 7,230) | 5,694) | 6,873) |
| Long-lived assets | 2,760) | 2,349) | 1,610) | 1,546) | 1,532) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 3.61 | 3.72 | 4.49 | 3.68 | 4.49 |
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).
1 2023 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 9,970 ÷ 2,760 = 3.61
| Area activity ratio | Geographic area | The company |
|---|---|---|
| Area asset turnover | Other international | Other international area asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net sales
Cummins Inc., net sales by geographic area
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States | 19,302) | 15,552) | 12,489) | 10,605) | 13,519) |
| China | 3,115) | 2,390) | 3,169) | 2,832) | 2,331) |
| India | 1,678) | 1,392) | 1,133) | 680) | 848) |
| Other international | 9,970) | 8,740) | 7,230) | 5,694) | 6,873) |
| Total | 34,065) | 28,074) | 24,021) | 19,811) | 23,571) |
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).
Long-lived assets
Cummins Inc., long-lived assets by geographic area
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States | 5,013) | 4,714) | 3,978) | 3,776) | 3,555) |
| China | 1,030) | 1,052) | 1,136) | 1,010) | 893) |
| India | 681) | 665) | 573) | 595) | 616) |
| Other international | 2,760) | 2,349) | 1,610) | 1,546) | 1,532) |
| Total | 9,484) | 8,780) | 7,297) | 6,927) | 6,596) |
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).