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.

Analysis of Profitability Ratios

Microsoft Excel

Profitability Ratios (Summary)

Cummins Inc., profitability ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Return on Sales
Gross profit margin 24.22% 23.93% 23.71% 24.70% 25.37%
Operating profit margin 5.17% 10.43% 11.27% 11.45% 11.45%
Net profit margin 2.16% 7.66% 8.87% 9.03% 9.59%
Return on Investment
Return on equity (ROE) 8.31% 23.97% 25.15% 22.19% 30.11%
Return on assets (ROA) 2.30% 7.10% 8.99% 7.91% 11.45%

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Cummins Inc. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Cummins Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Cummins Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Cummins Inc. ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
ROA A profitability ratio calculated as net income divided by total assets. Cummins Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Gross Profit Margin

Cummins Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Gross margin 8,249 6,719 5,695 4,894 5,980
Net sales 34,065 28,074 24,021 19,811 23,571
Profitability Ratio
Gross profit margin1 24.22% 23.93% 23.71% 24.70% 25.37%
Benchmarks
Gross Profit Margin, Competitors2
Boeing Co. 9.93% 5.26% 4.84% -9.78% 5.83%
Caterpillar Inc. 33.04% 26.91% 26.30% 25.47% 27.83%
Eaton Corp. plc 36.36% 33.19% 32.28% 30.52% 32.97%
GE Aerospace 21.95% 24.55% 24.19% 17.26% 23.52%
Honeywell International Inc. 37.28% 36.99% 35.85% 32.07% 33.70%
Lockheed Martin Corp. 12.55% 12.56% 13.52% 13.23% 13.99%
RTX Corp. 17.54% 20.38% 19.40% 15.08% 25.93%

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
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 8,249 ÷ 34,065 = 24.22%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Cummins Inc. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Operating Profit Margin

Cummins Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Operating income 1,761 2,929 2,706 2,269 2,700
Net sales 34,065 28,074 24,021 19,811 23,571
Profitability Ratio
Operating profit margin1 5.17% 10.43% 11.27% 11.45% 11.45%
Benchmarks
Operating Profit Margin, Competitors2
Boeing Co. -0.99% -5.33% -4.66% -21.95% -2.58%
Caterpillar Inc. 20.30% 13.97% 14.27% 11.67% 16.33%
Eaton Corp. plc 16.75% 14.55% 15.69% 11.45% 13.38%
GE Aerospace 8.49% 6.05% 8.58% 5.49% 12.84%
Honeywell International Inc. 19.32% 18.12% 18.03% 17.45% 18.66%
Lockheed Martin Corp. 12.59% 12.65% 13.61% 13.22% 14.29%
RTX Corp. 5.17% 8.07% 7.70% -3.34% 11.64%
Operating Profit Margin, Sector
Capital Goods 10.11% 8.29% 9.11% 3.00% 10.93%
Operating Profit Margin, Industry
Industrials 10.07% 9.34% 9.80% 4.43% 9.67%

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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 1,761 ÷ 34,065 = 5.17%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Cummins Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Net Profit Margin

Cummins Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income attributable to Cummins Inc. 735 2,151 2,131 1,789 2,260
Net sales 34,065 28,074 24,021 19,811 23,571
Profitability Ratio
Net profit margin1 2.16% 7.66% 8.87% 9.03% 9.59%
Benchmarks
Net Profit Margin, Competitors2
Boeing Co. -2.86% -7.41% -6.75% -20.42% -0.83%
Caterpillar Inc. 16.18% 11.85% 13.47% 7.68% 12.00%
Eaton Corp. plc 13.87% 11.86% 10.92% 7.90% 10.34%
GE Aerospace 14.68% 0.31% -9.17% 7.81% -5.69%
Honeywell International Inc. 15.43% 14.00% 16.11% 14.64% 16.73%
Lockheed Martin Corp. 10.24% 8.69% 9.42% 10.45% 10.42%
RTX Corp. 4.64% 7.75% 6.00% -6.22% 7.19%
Net Profit Margin, Sector
Capital Goods 9.09% 5.27% 3.71% 1.85% 5.03%
Net Profit Margin, Industry
Industrials 8.61% 5.27% 6.43% 1.43% 3.90%

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
Net profit margin = 100 × Net income attributable to Cummins Inc. ÷ Net sales
= 100 × 735 ÷ 34,065 = 2.16%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Cummins Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Return on Equity (ROE)

Cummins Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income attributable to Cummins Inc. 735 2,151 2,131 1,789 2,260
Total Cummins Inc. shareholders’ equity 8,850 8,975 8,474 8,062 7,507
Profitability Ratio
ROE1 8.31% 23.97% 25.15% 22.19% 30.11%
Benchmarks
ROE, Competitors2
Boeing Co.
Caterpillar Inc. 53.02% 42.25% 39.37% 19.56% 41.77%
Eaton Corp. plc 16.90% 14.45% 13.06% 9.44% 13.75%
GE Aerospace 34.63% 0.62% -16.17% 16.04% -17.58%
Honeywell International Inc. 35.68% 29.74% 29.85% 27.23% 33.22%
Lockheed Martin Corp. 101.24% 61.86% 57.62% 113.60% 199.23%
RTX Corp. 5.34% 7.16% 5.29% -4.88% 13.25%
ROE, Sector
Capital Goods 27.89% 13.39% 8.48% 4.42% 18.11%
ROE, Industry
Industrials 27.68% 15.53% 16.58% 3.94% 13.76%

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
ROE = 100 × Net income attributable to Cummins Inc. ÷ Total Cummins Inc. shareholders’ equity
= 100 × 735 ÷ 8,850 = 8.31%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Cummins Inc. ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Return on Assets (ROA)

Cummins Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income attributable to Cummins Inc. 735 2,151 2,131 1,789 2,260
Total assets 32,005 30,299 23,710 22,624 19,737
Profitability Ratio
ROA1 2.30% 7.10% 8.99% 7.91% 11.45%
Benchmarks
ROA, Competitors2
Boeing Co. -1.62% -3.60% -3.03% -7.80% -0.48%
Caterpillar Inc. 11.81% 8.18% 7.84% 3.83% 7.77%
Eaton Corp. plc 8.37% 7.03% 6.30% 4.43% 6.74%
GE Aerospace 5.81% 0.12% -3.28% 2.25% -1.87%
Honeywell International Inc. 9.20% 7.97% 8.60% 7.40% 10.47%
Lockheed Martin Corp. 13.19% 10.84% 12.41% 13.47% 13.11%
RTX Corp. 1.97% 3.27% 2.39% -2.17% 3.96%
ROA, Sector
Capital Goods 5.21% 2.84% 1.86% 0.80% 2.72%
ROA, Industry
Industrials 5.75% 3.46% 3.83% 0.74% 2.39%

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
ROA = 100 × Net income attributable to Cummins Inc. ÷ Total assets
= 100 × 735 ÷ 32,005 = 2.30%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Cummins Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023.