Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Cummins Inc. pages available for free this week:
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Enterprise Value (EV)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Cummins Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Long-term Activity Ratios (Summary)
Cummins Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
The analysis of the financial ratios over the presented periods reveals several insightful trends. Firstly, the net fixed asset turnover ratio, which indicates the efficiency of using fixed assets to generate sales, shows fluctuations with an overall stable pattern. Starting from a lower base in early 2020, the ratio hovered near 5.5 in most quarters, with some fluctuations dipping toward 4.66 but recovering afterward, suggesting relatively consistent asset utilization efficiency over the period.
The total asset turnover ratio, reflecting overall asset efficiency in generating revenues, exhibits a declining trend during 2019 and 2020, reaching a low point below 0.9 at the end of 2020. Thereafter, a gradual recovery is observed, steadily increasing from 0.88 in early 2021 to above 1.06 by the first quarter of 2024. This indicates improved utilization of total assets over the latter periods but highlights a challenging phase of decreased turnover around the 2020 fiscal year.
The equity turnover ratio, which measures how efficiently the equity is used to generate sales, experienced a notable decline from above 3.1 in early 2019 to lows near 2.46 at the end of 2019 and early 2020. This was followed by a progressive recovery and stabilization around the 3.1 to 3.13 range through 2021 and 2022. Interestingly, a marked increase emerges in 2023, reaching approximately 3.85 in March 2024, indicating improved efficiency in equity utilization during recent quarters.
- Net Fixed Asset Turnover
- Displayed stable usage efficiency with periodic dips in mid-2020 but a general recovery and maintenance around 5.5 thereafter.
- Total Asset Turnover
- Experienced a decline during 2019-2020, bottoming near 0.88, followed by a consistent upward trend surpassing 1.06 by early 2024, reflecting improved overall asset efficiency.
- Equity Turnover
- Declined significantly in late 2019 and early 2020 but steadily rebounded thereafter, with a notable surge in 2023 reaching a peak of 3.85, indicating enhanced effectiveness in employing equity capital.
In summary, the financial ratios indicate that while asset utilization faced challenges around the 2019-2020 timeframe, subsequent years show signs of recovery and improvements, particularly in the efficient use of equity. The trends suggest a strengthened operational performance and better capital use efficiency in recent quarters.
Net Fixed Asset Turnover
Cummins Inc., net fixed asset turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Property, plant and equipment, net | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Net fixed asset turnover
= (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends across net sales, property, plant and equipment (PP&E), and net fixed asset turnover ratios over the observed periods.
- Net Sales
- Net sales exhibited fluctuations over the period from March 2019 through March 2024. Initial sales were around 6,000 million USD in early 2019, followed by a decline into mid-2020, reaching a low point of approximately 3,852 million USD in June 2020. This decline aligns with the global economic disruptions experienced during that time. Subsequent quarters show a recovery with a general upward trend, peaking at 8,638 million USD in June 2023 before a slight decline to 8,403 million USD in March 2024. The overall pattern indicates recovery and growth in sales, surpassing pre-2020 levels by considerable margins.
- Property, Plant and Equipment, Net (PP&E)
- The net value of PP&E demonstrates a steady increase throughout the timeline. Starting around 4,066 million USD in the first quarter of 2019, the figure experienced modest fluctuations initially but showed a significant upward trajectory from 2021 onwards. The PP&E value reached a peak of 6,249 million USD in December 2023 before slightly decreasing to 6,011 million USD in March 2024. This trend suggests continued investment in fixed assets, possibly indicating capacity expansion or modernization efforts over the recent years.
- Net Fixed Asset Turnover (Ratio)
- The net fixed asset turnover, which measures how efficiently the company uses its fixed assets to generate sales, is available from September 2019 onward. The ratio started relatively high at 5.55 and showed a slight decline through 2020, reaching a low near 4.66 in December 2020, coinciding with the period of reduced sales and economic challenges. From 2021 onward, the ratio generally improved, with minor fluctuations, reaching 5.66 in March 2024. This improvement in turnover ratio despite increasing PP&E values suggests enhanced operational efficiency and effective utilization of assets to generate sales revenue.
In summary, the data indicates a period of contraction in sales and asset efficiency during 2020, followed by a strong recovery and growth phase characterized by rising sales, increased investment in fixed assets, and improved asset turnover. The company appears to have expanded its asset base while simultaneously improving the efficiency of asset usage over the most recent quarters.
Total Asset Turnover
Cummins Inc., total asset turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Total asset turnover
= (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The net sales demonstrated a varied trajectory over the observed periods. Initially, net sales showed a decline from the first quarter of 2019 through mid-2020, reaching a low point in the second quarter of 2020. From that juncture onward, a general upward trend is evident, with sales increasing steadily to a peak in the third quarter of 2023, followed by a slight decrease in the subsequent quarters while remaining relatively elevated compared to earlier periods.
Total assets exhibited a gradual and consistent increase over the timeline, with some acceleration from the end of 2021 through mid-2023. This indicates ongoing investment or asset accumulation during this interval. The total value of assets grew from under 20,000 million US dollars to over 31,000 million US dollars by the end of the period observed, signaling expansion and possibly increased capacity or acquisition activities.
The total asset turnover ratio, available from late 2019 onward, reveals a pattern of fluctuation followed by recovery. The ratio started at 1.19 and decreased steadily to reach a trough around 0.88 in late 2020. Subsequently, the turnover ratio rebounded steadily, achieving values above 1.0 from early 2021 and progressively increasing to 1.07 by the end of the first quarter of 2024. This suggests an improving efficiency in the usage of assets to generate sales after the dip experienced during 2020.
- Net Sales
- Declined in early periods, reaching a low in mid-2020, followed by a consistent and substantial recovery through 2023, with a minor reduction in the early 2024 quarter.
- Total Assets
- Showed steady growth with marked acceleration from late 2021 to mid-2023, reflecting asset base expansion and possible increased operational scale.
- Total Asset Turnover
- Experienced a significant decline in 2020, bottoming near 0.88, before recovering to exceed prior levels, reaching 1.07 by early 2024, indicating improving asset utilization efficiency.
Equity Turnover
Cummins Inc., equity turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Total Cummins Inc. shareholders’ equity | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Equity turnover
= (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
÷ Total Cummins Inc. shareholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the company's performance metrics over the reported periods.
- Net Sales
- Net sales show a degree of volatility over the periods analyzed. Beginning at 6,004 million US dollars in March 2019, sales initially demonstrated a downward trend reaching a low of 3,852 million US dollars by June 2020, likely reflecting a significant impact in that quarter. Subsequently, net sales exhibited a recovering trend, increasing steadily through the quarters and peaking at 8,638 million US dollars in the third quarter of 2023. The most recent quarter shows a slight decline to 8,403 million US dollars, suggesting a possible plateau or minor correction.
- Total Shareholders’ Equity
- The total shareholders’ equity experienced relatively moderate fluctuations. Starting at 7,820 million US dollars in March 2019, it decreased somewhat by March 2020 to 7,068 million US dollars, likely mirroring the challenging period observed in net sales. However, it recovered and rose steadily thereafter, reaching a peak of 10,658 million US dollars in September 2023 before declining to 8,850 million US dollars in the following quarter and slightly increasing to 9,067 million US dollars in March 2024. This pattern suggests a generally positive trend in equity with some recent volatility.
- Equity Turnover Ratio
- The equity turnover ratio, measured starting in December 2019, begins at 3.14 and remains relatively stable around the 2.5 to 3.1 range through 2021 and 2022. From early 2023, the ratio shows a marked increase, peaking at 3.85 in the first quarter of 2024, the highest in the reported periods. This indicates an improved efficiency in using shareholder equity to generate sales, coinciding with the period of increased net sales.
Overall, the data suggests the company faced challenges during the middle of the 2020 calendar year with decreased sales and equity, followed by a recovery phase characterized by growing sales and increasing equity values. The upward trend in equity turnover ratio in recent periods further underscores enhanced operational efficiency, though the latest data points indicate possible stabilization or minor fluctuation in these improvements.