Stock Analysis on Net
Stock Analysis on Net

Cummins Inc. (NYSE:CMI)

This company has been moved to the archive! The financial data has not been updated since May 2, 2024.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Cummins Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Mar 31, 2024 21.37% = 6.09% × 3.51
Dec 31, 2023 8.31% = 2.30% × 3.62
Sep 30, 2023 26.24% = 8.71% × 3.01
Jun 30, 2023 24.58% = 8.01% × 3.07
Mar 31, 2023 26.22% = 8.03% × 3.27
Dec 31, 2022 23.97% = 7.10% × 3.38
Sep 30, 2022 22.84% = 6.43% × 3.55
Jun 30, 2022 23.44% = 8.37% × 2.80
Mar 31, 2022 23.07% = 8.07% × 2.86
Dec 31, 2021 25.15% = 8.99% × 2.80
Oct 3, 2021 27.69% = 9.70% × 2.85
Jul 4, 2021 28.03% = 9.75% × 2.87
Apr 4, 2021 23.20% = 8.19% × 2.83
Dec 31, 2020 22.19% = 7.91% × 2.81
Sep 27, 2020 20.62% = 7.36% × 2.80
Jun 28, 2020 23.76% = 8.41% × 2.82
Mar 29, 2020 29.82% = 10.50% × 2.84
Dec 31, 2019 30.11% = 11.45% × 2.63
Sep 29, 2019 — = — × 2.61
Jun 30, 2019 — = — × 2.45
Mar 31, 2019 — = — × 2.54

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 primary reason for the increase in return on equity ratio (ROE) over Q1 2024 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Cummins Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 31, 2024 21.37% = 5.70% × 1.07 × 3.51
Dec 31, 2023 8.31% = 2.16% × 1.06 × 3.62
Sep 30, 2023 26.24% = 8.40% × 1.04 × 3.01
Jun 30, 2023 24.58% = 7.89% × 1.01 × 3.07
Mar 31, 2023 26.22% = 8.37% × 0.96 × 3.27
Dec 31, 2022 23.97% = 7.66% × 0.93 × 3.38
Sep 30, 2022 22.84% = 7.32% × 0.88 × 3.55
Jun 30, 2022 23.44% = 8.26% × 1.01 × 2.80
Mar 31, 2022 23.07% = 8.00% × 1.01 × 2.86
Dec 31, 2021 25.15% = 8.87% × 1.01 × 2.80
Oct 3, 2021 27.69% = 9.32% × 1.04 × 2.85
Jul 4, 2021 28.03% = 9.52% × 1.02 × 2.87
Apr 4, 2021 23.20% = 9.00% × 0.91 × 2.83
Dec 31, 2020 22.19% = 9.03% × 0.88 × 2.81
Sep 27, 2020 20.62% = 8.12% × 0.91 × 2.80
Jun 28, 2020 23.76% = 8.46% × 0.99 × 2.82
Mar 29, 2020 29.82% = 9.34% × 1.12 × 2.84
Dec 31, 2019 30.11% = 9.59% × 1.19 × 2.63
Sep 29, 2019 — = — × — × 2.61
Jun 30, 2019 — = — × — × 2.45
Mar 31, 2019 — = — × — × 2.54

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 primary reason for the increase in return on equity ratio (ROE) over Q1 2024 is the increase in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Cummins Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Mar 31, 2024 21.37% = 0.72 × 0.88 × 9.03% × 1.07 × 3.51
Dec 31, 2023 8.31% = 0.48 × 0.80 × 5.57% × 1.06 × 3.62
Sep 30, 2023 26.24% = 0.79 × 0.91 × 11.79% × 1.04 × 3.01
Jun 30, 2023 24.58% = 0.77 × 0.91 × 11.32% × 1.01 × 3.07
Mar 31, 2023 26.22% = 0.78 × 0.92 × 11.60% × 0.96 × 3.27
Dec 31, 2022 23.97% = 0.77 × 0.93 × 10.64% × 0.93 × 3.38
Sep 30, 2022 22.84% = 0.76 × 0.95 × 10.20% × 0.88 × 3.55
Jun 30, 2022 23.44% = 0.79 × 0.96 × 10.91% × 1.01 × 2.80
Mar 31, 2022 23.07% = 0.77 × 0.96 × 10.76% × 1.01 × 2.86
Dec 31, 2021 25.15% = 0.78 × 0.96 × 11.78% × 1.01 × 2.80
Oct 3, 2021 27.69% = 0.79 × 0.96 × 12.29% × 1.04 × 2.85
Jul 4, 2021 28.03% = 0.77 × 0.96 × 12.79% × 1.02 × 2.87
Apr 4, 2021 23.20% = 0.77 × 0.96 × 12.24% × 0.91 × 2.83
Dec 31, 2020 22.19% = 0.77 × 0.96 × 12.20% × 0.88 × 2.81
Sep 27, 2020 20.62% = 0.77 × 0.96 × 10.98% × 0.91 × 2.80
Jun 28, 2020 23.76% = 0.80 × 0.96 × 11.02% × 0.99 × 2.82
Mar 29, 2020 29.82% = 0.80 × 0.96 × 12.07% × 1.12 × 2.84
Dec 31, 2019 30.11% = 0.80 × 0.96 × 12.45% × 1.19 × 2.63
Sep 29, 2019 — = — × — × — × — × 2.61
Jun 30, 2019 — = — × — × — × — × 2.45
Mar 31, 2019 — = — × — × — × — × 2.54

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 primary reason for the increase in return on equity ratio (ROE) over Q1 2024 is the increase in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Cummins Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2024 6.09% = 5.70% × 1.07
Dec 31, 2023 2.30% = 2.16% × 1.06
Sep 30, 2023 8.71% = 8.40% × 1.04
Jun 30, 2023 8.01% = 7.89% × 1.01
Mar 31, 2023 8.03% = 8.37% × 0.96
Dec 31, 2022 7.10% = 7.66% × 0.93
Sep 30, 2022 6.43% = 7.32% × 0.88
Jun 30, 2022 8.37% = 8.26% × 1.01
Mar 31, 2022 8.07% = 8.00% × 1.01
Dec 31, 2021 8.99% = 8.87% × 1.01
Oct 3, 2021 9.70% = 9.32% × 1.04
Jul 4, 2021 9.75% = 9.52% × 1.02
Apr 4, 2021 8.19% = 9.00% × 0.91
Dec 31, 2020 7.91% = 9.03% × 0.88
Sep 27, 2020 7.36% = 8.12% × 0.91
Jun 28, 2020 8.41% = 8.46% × 0.99
Mar 29, 2020 10.50% = 9.34% × 1.12
Dec 31, 2019 11.45% = 9.59% × 1.19
Sep 29, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

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 primary reason for the increase in return on assets ratio (ROA) over Q1 2024 is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Cummins Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Mar 31, 2024 6.09% = 0.72 × 0.88 × 9.03% × 1.07
Dec 31, 2023 2.30% = 0.48 × 0.80 × 5.57% × 1.06
Sep 30, 2023 8.71% = 0.79 × 0.91 × 11.79% × 1.04
Jun 30, 2023 8.01% = 0.77 × 0.91 × 11.32% × 1.01
Mar 31, 2023 8.03% = 0.78 × 0.92 × 11.60% × 0.96
Dec 31, 2022 7.10% = 0.77 × 0.93 × 10.64% × 0.93
Sep 30, 2022 6.43% = 0.76 × 0.95 × 10.20% × 0.88
Jun 30, 2022 8.37% = 0.79 × 0.96 × 10.91% × 1.01
Mar 31, 2022 8.07% = 0.77 × 0.96 × 10.76% × 1.01
Dec 31, 2021 8.99% = 0.78 × 0.96 × 11.78% × 1.01
Oct 3, 2021 9.70% = 0.79 × 0.96 × 12.29% × 1.04
Jul 4, 2021 9.75% = 0.77 × 0.96 × 12.79% × 1.02
Apr 4, 2021 8.19% = 0.77 × 0.96 × 12.24% × 0.91
Dec 31, 2020 7.91% = 0.77 × 0.96 × 12.20% × 0.88
Sep 27, 2020 7.36% = 0.77 × 0.96 × 10.98% × 0.91
Jun 28, 2020 8.41% = 0.80 × 0.96 × 11.02% × 0.99
Mar 29, 2020 10.50% = 0.80 × 0.96 × 12.07% × 1.12
Dec 31, 2019 11.45% = 0.80 × 0.96 × 12.45% × 1.19
Sep 29, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

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 primary reason for the increase in return on assets ratio (ROA) over Q1 2024 is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Cummins Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Mar 31, 2024 5.70% = 0.72 × 0.88 × 9.03%
Dec 31, 2023 2.16% = 0.48 × 0.80 × 5.57%
Sep 30, 2023 8.40% = 0.79 × 0.91 × 11.79%
Jun 30, 2023 7.89% = 0.77 × 0.91 × 11.32%
Mar 31, 2023 8.37% = 0.78 × 0.92 × 11.60%
Dec 31, 2022 7.66% = 0.77 × 0.93 × 10.64%
Sep 30, 2022 7.32% = 0.76 × 0.95 × 10.20%
Jun 30, 2022 8.26% = 0.79 × 0.96 × 10.91%
Mar 31, 2022 8.00% = 0.77 × 0.96 × 10.76%
Dec 31, 2021 8.87% = 0.78 × 0.96 × 11.78%
Oct 3, 2021 9.32% = 0.79 × 0.96 × 12.29%
Jul 4, 2021 9.52% = 0.77 × 0.96 × 12.79%
Apr 4, 2021 9.00% = 0.77 × 0.96 × 12.24%
Dec 31, 2020 9.03% = 0.77 × 0.96 × 12.20%
Sep 27, 2020 8.12% = 0.77 × 0.96 × 10.98%
Jun 28, 2020 8.46% = 0.80 × 0.96 × 11.02%
Mar 29, 2020 9.34% = 0.80 × 0.96 × 12.07%
Dec 31, 2019 9.59% = 0.80 × 0.96 × 12.45%
Sep 29, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

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 primary reason for the increase in net profit margin ratio over Q1 2024 is the increase in operating profitability measured by EBIT margin ratio.