Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Statement of Comprehensive Income
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Reportable Segments
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
- Aggregate Accruals
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Profitability Ratios (Summary)
Cummins Inc., profitability 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 financial data indicates various trends in profitability and efficiency ratios for the company over the analyzed periods.
- Gross Profit Margin
- The gross profit margin maintains relative stability throughout the reported quarters, fluctuating slightly but remaining within a narrow range around 23.5% to 25.5%. There is no strong upward or downward trend, suggesting consistent cost management relative to revenues.
- Operating Profit Margin
- Operating profit margin demonstrates moderate variability, peaking around Q2 and Q3 of 2021 with values exceeding 12%, but subsequently experiencing a notable decline in the most recent quarters, falling to approximately 5%. This sharp decrease in the last two reported quarters may indicate rising operating expenses or margin pressure.
- Net Profit Margin
- Net profit margin follows a pattern similar to operating margin. Values generally fluctuate between 7% and 9.5% until the latest two quarters, where it declines significantly to around 2% and then partially recovers to about 5.7%. This recent contraction suggests impacts from lower operating income, increased costs, or other non-operating factors affecting net profitability.
- Return on Equity (ROE)
- ROE shows considerable variation over time, starting from above 30% in early periods and dipping below 20% mid-period, with recoveries and declines thereafter. The most recent quarters show a sharp decline to 8.31% followed by a partial recovery to 21.37%. This volatility may reflect changes in earnings, equity base, or capital structure.
- Return on Assets (ROA)
- ROA trends mirror the broader profitability pattern, generally ranging between 6% and 11%, with an evident dip to 2.3% followed by a modest recovery to 6.09% in the last two quarters. This suggests temporary decreases in net income relative to asset utilization efficiency.
In summary, the analyzed financial ratios indicate stable gross margins but recent declines in profitability metrics such as operating margin, net margin, ROE, and ROA. The downturn in the last two reported quarters is particularly notable and warrants further investigation to identify underlying causes and potential impacts on future performance.
Return on Sales
Return on Investment
Gross Profit Margin
Cummins Inc., gross profit margin 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) | ||||||||||||||||||||||||||||
| Gross margin | ||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Gross Profit Margin, 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
Gross profit margin = 100
× (Gross marginQ1 2024
+ Gross marginQ4 2023
+ Gross marginQ3 2023
+ Gross marginQ2 2023)
÷ (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analyzed financial data reflects several notable trends in key performance indicators over the specified periods.
- Gross Margin (US$ in millions)
- The gross margin experienced fluctuations throughout the examined timelines. Starting at 1,532 million in March 2019, it increased to a peak of 1,641 million in June 2019 before declining to 890 million in June 2020, which represents a significant dip. This decline is followed by a general recovery and upward trend, reaching its highest reported value of 2,148 million by June 2023. Although there were some minor decreases near the end of the period, notably in September and December 2023, overall, the gross margin shows robust growth and resilience, culminating in 2,041 million in March 2024.
- Net Sales (US$ in millions)
- Net sales exhibit a similar pattern of variation. Beginning at 6,004 million in March 2019, sales slightly increased initially but then sharply decreased to 3,852 million in June 2020, coinciding with the gross margin’s reduction. After this trough, net sales recovered steadily, achieving 8,638 million in July 2023. Toward the end of the dataset, sales show some volatility with a decrease to 8,403 million by March 2024, which may suggest external market or operational influences during this period. Overall, net sales demonstrate resilience and an overall upward trajectory post mid-2020.
- Gross Profit Margin (%)
- The gross profit margin percentage remains relatively stable and less volatile than absolute values. It is documented from March 2020 onward, maintaining a narrow band roughly between 23.6% and 25.4%. The highest rates are observed early in the available percentage data series (around 25.4% in mid-2020), followed by a gradual decrease to levels slightly under 24% for most subsequent quarters. Minor fluctuations are observed, but the margin percentage does not exhibit any strong trend of improvement or degradation, indicating that margin efficiency remained fairly consistent despite variations in gross margin and net sales figures.
In summary, both gross margin and net sales experienced a pronounced dip during the first half of 2020, followed by sustained recovery and growth through mid-2023. The gross profit margin percentage held steady, suggesting stable cost control or pricing strategies relative to sales revenue. The slight declines in sales and margins toward the final quarters may warrant further analysis to identify underlying causes, but overall, the data indicates a strong recovery and positive trend over the multi-year horizon analyzed.
Operating Profit Margin
Cummins Inc., operating profit margin 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) | ||||||||||||||||||||||||||||
| Operating income | ||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Operating Profit Margin, 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
Operating profit margin = 100
× (Operating incomeQ1 2024
+ Operating incomeQ4 2023
+ Operating incomeQ3 2023
+ Operating incomeQ2 2023)
÷ (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The data indicates a fluctuating trend in operating income over the examined quarterly periods. Initially, operating income showed variability with a high of 848 million US$ in June 2019 and a significant drop to 354 million US$ in December 2019. Subsequent quarters in 2020 saw a recovery and growth, reaching 897 million US$ in June 2022. However, the fourth quarter of 2023 experienced a pronounced decline, displaying a negative operating income of -1212 million US$. The most recent quarter, March 2024, witnessed a rebound with operating income recovering to 923 million US$.
Net sales exhibited a general upward trend over the period. Starting at 6004 million US$ in March 2019, net sales decreased notably during the pandemic-impacted quarters of 2020, hitting a low of 3852 million US$ in June 2020. From that point, net sales increased steadily, peaking at 8638 million US$ in September 2023. The final quarter data for March 2024 shows a slight decline in net sales to 8403 million US$ but remains above earlier periods.
Operating profit margin percentages, available from December 2019 onward, remained relatively stable around the 10% to 12% range during most quarters. Margins consistently hovered near or slightly above 11%, with minor fluctuations. Notably, there was a sharp decrease in operating margin in late 2023 to 5.17% in December and further to 4.87% in March 2024, corresponding with the observed volatility and decline in operating income during the same period.
- Operating Income
- Displayed volatility with initial decreases in late 2019, followed by recovery and growth through mid-2023, culminating in a significant negative value in late 2023, and partial recovery by early 2024.
- Net Sales
- Experienced a dip during the 2020 pandemic quarters but recovered and trended upward consistently thereafter, reaching record peaks in 2023 before a modest decline in early 2024.
- Operating Profit Margin
- Maintained a stable band around 10-12% for most of the timeline, with a noteworthy drop in late 2023 continuing into early 2024, reflecting deteriorating profitability despite relatively strong sales.
Overall, the analysis suggests that while net sales have generally increased over the period, profitability experienced notable challenges in the late quarters of 2023, as indicated by declines in both operating income and operating margin. These trends may signal operational difficulties or external factors impacting profitability despite solid revenue figures. The subsequent partial recovery in operating income by March 2024 may indicate some stabilization or corrective actions taken during this challenging period.
Net Profit Margin
Cummins Inc., net profit margin 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 income attributable to Cummins Inc. | ||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Profit Margin, 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 profit margin = 100
× (Net income attributable to Cummins Inc.Q1 2024
+ Net income attributable to Cummins Inc.Q4 2023
+ Net income attributable to Cummins Inc.Q3 2023
+ Net income attributable to Cummins Inc.Q2 2023)
÷ (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Income Attributable to Cummins Inc.
- The net income demonstrated considerable volatility over the periods analyzed. Starting from a high of 663 million in March 2019, the values fluctuated, showing a significant decline to 300 million by December 2019. A notable recovery occurred in 2020 with periodic improvements, peaking at 702 million in June 2022. Subsequently, the net income again experienced marked instability, dropping sharply to -1431 million in December 2023 before rebounding to 1993 million in March 2024. This pattern indicates substantial earnings variability, with some quarters showing substantial losses, possibly due to extraordinary or non-recurring items.
- Net Sales
- Net sales trended upward over the given periods, starting from 6004 million in March 2019 and generally increasing to reach a peak of 8638 million in September 2023. Some minor fluctuations were observed, such as a dip in June 2020 to 3852 million, which may reflect external market disruptions or operational challenges. Nevertheless, the overall trajectory points to growth in sales revenue, with recent quarters maintaining levels above 8400 million, suggesting sustained demand and effective sales management.
- Net Profit Margin
- The net profit margin was absent in the early periods but became available starting from March 2020, when it measured 9.59%. It displayed a stable range between approximately 7% to 9.5% throughout most quarters, indicating consistent profitability relative to sales. Margins dipped to 7.32% in September 2022 but generally remained above 7%. In December 2023, there was a drastic decline to 2.16%, coinciding with the negative net income in that quarter. By March 2024, the margin recovered to 5.7%, still below the historical norms but showing signs of improvement. This suggests that profitability was generally stable except for the significant disruption occurring late in the timeframe analyzed.
- Overall Analysis
- The financial data reveals a company experiencing fluctuating profitability against a backdrop of generally increasing sales. The spikes and drops in net income and margin, particularly the extraordinary loss recorded at the end of 2023 followed by a strong rebound, highlight periods of financial stress and recovery. The steady growth in net sales suggests a robust market position, while the variations in profitability might be linked to operational challenges, cost pressures, or extraordinary events impacting earnings. Further investigation into the causes of these earnings swings would be beneficial to understand underlying operational dynamics and risk factors.
Return on Equity (ROE)
Cummins Inc., ROE 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 income attributable to Cummins Inc. | ||||||||||||||||||||||||||||
| Total Cummins Inc. shareholders’ equity | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROE, 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
ROE = 100
× (Net income attributable to Cummins Inc.Q1 2024
+ Net income attributable to Cummins Inc.Q4 2023
+ Net income attributable to Cummins Inc.Q3 2023
+ Net income attributable to Cummins Inc.Q2 2023)
÷ Total Cummins Inc. shareholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The quarterly financial data indicates fluctuating net income attributable to the company over the observed period, with notable variability especially in recent quarters. In the initial years, net income showed moderate stability, fluctuating between approximately $276 million and $702 million. However, in the quarter ending March 31, 2024, there was a significant deviation with a substantial negative net income of around -$1.431 billion, followed by a sharp rebound to nearly $1.993 billion in the subsequent quarter.
Total shareholders’ equity demonstrated a general upward trend, increasing from about $7.82 billion in early 2019 to a peak exceeding $10.6 billion by the end of 2023. There were minor fluctuations and some periods of stabilization, but the overall direction was positive. The latest figure, however, shows a slight decline to approximately $9.07 billion by the first quarter of 2024, which coincides with the large dip in net income.
Return on equity (ROE) metrics were available starting from the quarter ending December 31, 2019. Since then, ROE has been relatively high, consistently above 20%, often ranging between 22% and 30%. The ROE experienced minor dips and recoveries but remained robust until the quarter ending March 31, 2024, when it dramatically decreased to around 8.31%, before improving again to approximately 21.37% in the subsequent quarter.
- Net Income Trends
- Stable to moderate fluctuations from 2019 through 2023 with an exception of extreme volatility in early 2024.
- Shareholders’ Equity
- Generally increasing over time, indicating growth and accumulation of equity except for a downturn in early 2024.
- Return on Equity (ROE)
- High and stable ROE consistently above 20% during most of the period, with a sharp decline in the first quarter of 2024 followed by recovery.
- Notable Observations
- Early 2024 marks a quarter of significant financial disturbance with both net income and ROE experiencing extreme fluctuations, possibly indicating extraordinary events or one-time charges impacting performance and equity.
Return on Assets (ROA)
Cummins Inc., ROA calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net income attributable to Cummins Inc. | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROA, 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
ROA = 100
× (Net income attributable to Cummins Inc.Q1 2024
+ Net income attributable to Cummins Inc.Q4 2023
+ Net income attributable to Cummins Inc.Q3 2023
+ Net income attributable to Cummins Inc.Q2 2023)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to Cummins Inc.
- The net income exhibits notable fluctuations throughout the period analyzed. Initial values in 2019 show moderate stability around the 600 million USD mark, with a significant drop to 300 million USD by the end of 2019. In 2020, net income varied considerably, reaching a low of 276 million USD in the second quarter but recovering to approximately 500 million USD by year-end. The trend in 2021 reflects moderate stability with quarterly net income ranging between approximately 394 and 603 million USD. Moving into 2022, net income experienced greater volatility, peaking at 702 million USD in the second quarter but declining towards the end of the year. The period from 2023 presents dramatic swings, including a sharp negative net income of -1,431 million USD in the first quarter, followed by a strong rebound exceeding 1,900 million USD the subsequent quarter, suggesting significant extraordinary events impacting profitability.
- Total Assets
- Total assets show a steady upward trend over the analysis period. Beginning at approximately 19,846 million USD in early 2019, assets grew consistently, crossing the 30,000 million USD threshold by mid-2023. The increase appears largely linear, with only minor quarter-to-quarter variation, indicating steady asset accumulation possibly driven by ongoing investment or operational expansion.
- Return on Assets (ROA)
- ROA data is unavailable for early 2019 and first quarter 2020, but from the second quarter of 2020 onwards, the ROA ranged between 6.43% and 11.45%, indicating relatively healthy asset profitability. Notably, ROA peaked at 11.45% in the quarter ending March 29, 2020. Subsequent quarters show a general decline into early 2022, falling below 7% at times, before a slight recovery towards the end of 2022 and into early 2023. The first quarter of 2024 shows a marked dip to 2.3%, possibly mirroring the net income loss reported in the same period, before rebounding modestly to 6.09% in the following quarter. This volatility signals that asset efficiency is sensitive to fluctuations in net income.
- Summary Insights
- The financial data reflects cyclical and volatile profitability with sharp swings in net income, particularly notable in early 2023, which may signal extraordinary events or operational challenges during that time. Despite this, total assets demonstrate consistent growth, indicating ongoing investment and asset base expansion. Return on Assets tracks net income trends closely, reflecting the impact of profitability shifts on asset efficiency. The overall pattern suggests a company experiencing growth in scale but facing periodic volatility in earnings performance.