Cummins Inc (CMI)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 735,000 | 2,151,000 | 2,131,000 | 1,789,000 | 2,260,000 |
| Revenue | US$ in thousands | 34,065,000 | 28,074,000 | 24,021,000 | 19,811,000 | 23,571,000 |
| Net profit margin | 2.16% | 7.66% | 8.87% | 9.03% | 9.59% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $735,000K ÷ $34,065,000K
= 2.16%
Based on the data provided for Cummins Inc., the trend in the net profit margin over the past five years shows a consistent decline. The net profit margin has decreased from 9.59% in 2019 to 2.16% in 2023. This decline indicates that the company's profitability in relation to its revenue has been shrinking over the years. It suggests that Cummins Inc. may be facing challenges in managing its expenses or generating sufficient revenue to maintain historical levels of profitability. Further analysis and investigation into the factors contributing to this downward trend would be necessary to understand the underlying causes and implications for the company's financial performance.
Peer comparison
Dec 31, 2023