Cummins Inc (CMI)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 8,249,000 | 8,067,000 | 7,638,000 | 7,216,000 | 6,719,000 | 6,217,000 | 5,989,000 | 5,741,000 | 5,695,000 | 5,739,000 | 5,674,000 | 5,086,000 | 4,894,000 | 4,846,000 | 4,991,000 | 5,742,000 | 5,980,000 | 6,213,000 | 6,270,000 | 6,069,000 |
| 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 |
| Gross profit margin | 24.22% | 24.23% | 23.72% | 23.94% | 23.93% | 23.77% | 24.16% | 23.61% | 23.71% | 23.91% | 24.51% | 24.34% | 24.70% | 24.78% | 24.70% | 25.43% | 25.37% | 25.76% | 25.81% | 25.07% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $8,249,000K ÷ $34,065,000K
= 24.22%
Cummins Inc. has maintained a fairly stable gross profit margin over the past eight quarters, ranging between 23.61% and 24.23%. The margin peaked at 24.23% in Q3 2023, which indicates the company effectively managed its cost of goods sold relative to its revenue during that period. Additionally, the gradual increase in margin from Q1 2023 to Q3 2023 suggests potential improvements in operational efficiency or pricing strategies. While there was a slight dip in the gross profit margin in Q2 2023, it remained within a narrow range, demonstrating consistency in the company's ability to generate profits from its core business activities. Overall, the stability and slight variations in Cummins Inc.'s gross profit margin indicate a generally healthy and well-managed position in terms of generating revenue after accounting for direct production costs.
Peer comparison
Dec 31, 2023