Cummins Inc (CMI)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 34,102,000 | 34,065,000 | 28,074,000 | 24,021,000 | 19,811,000 |
| Property, plant and equipment | US$ in thousands | 6,356,000 | 6,249,000 | 5,521,000 | 4,422,000 | 4,255,000 |
| Fixed asset turnover | 5.37 | 5.45 | 5.08 | 5.43 | 4.66 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $34,102,000K ÷ $6,356,000K
= 5.37
The trend in Cummins Inc's fixed asset turnover ratio over the past five years shows a general improvement, starting at 4.66 in December 31, 2020, and consistently increasing to reach 5.37 by December 31, 2024. This indicates that the company has been able to generate more revenue from its fixed assets over time, reflecting greater efficiency in the utilization of these assets to drive sales. The peak value of 5.45 on December 31, 2023 suggests a particularly effective utilization of fixed assets during that period. Overall, the increasing trend in fixed asset turnover is a positive indicator of the company's operational efficiency and effective management of its asset base over the years.
Peer comparison
Dec 31, 2024