Cummins Inc (CMI)
Fixed asset turnover
| 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 34,065,000 | 33,292,000 | 32,194,000 | 30,142,000 | 28,074,000 | 26,154,000 | 24,789,000 | 24,314,000 | 24,021,000 | 24,001,000 | 23,151,000 | 20,892,000 | 19,811,000 | 19,559,000 | 20,209,000 | 22,578,000 | 23,571,000 | 24,119,000 | 24,294,000 | 24,205,000 |
| Property, plant and equipment | US$ in thousands | 6,249,000 | 5,801,000 | 5,723,000 | 5,590,000 | 5,521,000 | 5,201,000 | 4,389,000 | 4,381,000 | 4,422,000 | 4,185,000 | 4,174,000 | 4,196,000 | 4,255,000 | 4,087,000 | 4,067,000 | 4,128,000 | 4,245,000 | 4,056,000 | 4,077,000 | 4,066,000 |
| Fixed asset turnover | 5.45 | 5.74 | 5.63 | 5.39 | 5.08 | 5.03 | 5.65 | 5.55 | 5.43 | 5.74 | 5.55 | 4.98 | 4.66 | 4.79 | 4.97 | 5.47 | 5.55 | 5.95 | 5.96 | 5.95 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $34,065,000K ÷ $6,249,000K
= 5.45
The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. A higher ratio indicates that the company is utilizing its fixed assets effectively to generate sales.
Cummins Inc.'s fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 5.03 to 5.74. This consistency suggests that Cummins is efficiently using its fixed assets to generate sales.
The highest fixed asset turnover ratio of 5.74 was recorded in Q3 2023, indicating that Cummins was particularly effective in generating revenue from its fixed assets during that quarter. On the other hand, the lowest ratio of 5.03 was observed in Q3 2022, which is still a reasonable level of efficiency.
Overall, Cummins Inc.'s fixed asset turnover ratios over the past eight quarters demonstrate a consistent and healthy utilization of fixed assets in generating revenue for the company.
Peer comparison
Dec 31, 2023