Cummins Inc (CMI)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 34,102,000 | 34,198,000 | 34,173,000 | 34,015,000 | 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 |
| Property, plant and equipment | US$ in thousands | 6,356,000 | 6,176,000 | 6,053,000 | 6,011,000 | 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 |
| Fixed asset turnover | 5.37 | 5.54 | 5.65 | 5.66 | 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 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $34,102,000K ÷ $6,356,000K
= 5.37
Fixed asset turnover measures how efficiently a company is generating revenue from its investment in fixed assets. For Cummins Inc, the fixed asset turnover has fluctuated over the analyzed period from March 31, 2020, to December 31, 2024. It started at 5.47 and experienced some ups and downs, reaching a low of 4.66 on December 31, 2020, before climbing back up to 5.74 on September 30, 2021.
Overall, Cummins Inc has shown a generally positive trend in its fixed asset turnover, indicating that the company has been effectively utilizing its fixed assets to generate revenue. The ratio peaked at 5.74 on September 30, 2023, before slightly dropping to 5.37 on December 31, 2024. This indicates that Cummins Inc has been able to consistently generate revenue relative to its investment in fixed assets, showcasing efficiency in its operations.
The trend suggests that Cummins Inc has been successful in leveraging its fixed assets to drive sales and maintain a solid level of operational efficiency. However, it will be important for the company to monitor this ratio to ensure the continued optimal utilization of its fixed assets in the future.
Peer comparison
Dec 31, 2024