Cummins Inc (CMI)
Total 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 |
| Total assets | US$ in thousands | 31,540,000 | 32,052,000 | 31,320,000 | 31,827,000 | 32,005,000 | 32,097,000 | 31,735,000 | 31,433,000 | 30,299,000 | 29,769,000 | 24,477,000 | 24,122,000 | 23,710,000 | 23,063,000 | 22,608,000 | 22,962,000 | 22,624,000 | 21,568,000 | 20,314,000 | 20,076,000 |
| Total asset turnover | 1.08 | 1.07 | 1.09 | 1.07 | 1.06 | 1.04 | 1.01 | 0.96 | 0.93 | 0.88 | 1.01 | 1.01 | 1.01 | 1.04 | 1.02 | 0.91 | 0.88 | 0.91 | 0.99 | 1.12 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $34,102,000K ÷ $31,540,000K
= 1.08
The total asset turnover ratio measures a company's ability to generate sales revenue from its assets. A higher total asset turnover ratio indicates that the company is more efficient in utilizing its assets to generate sales.
Analyzing Cummins Inc's total asset turnover over the provided time period, we observe fluctuations in the ratio. The ratio ranged from a low of 0.88 in September 2020 to a high of 1.09 in June 2024. This variability indicates changes in the company's efficiency in utilizing its assets to generate sales.
In general, it is positive to see an increasing trend in the total asset turnover ratio, as it suggests improved efficiency in generating sales revenue from assets. However, it is essential to consider other factors when interpreting this ratio, as fluctuations may be influenced by changes in business operations, market conditions, or asset structure.
Overall, monitoring and analyzing Cummins Inc's total asset turnover ratio can provide insights into the company's operational efficiency and performance in utilizing its assets effectively to drive sales growth.
Peer comparison
Dec 31, 2024