Cummins Inc (CMI)
Net profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 3,011,000 | 2,097,000 | 1,944,000 | 1,938,000 | 735,000 | 2,797,000 | 2,541,000 | 2,523,000 | 2,151,000 | 1,914,000 | 2,048,000 | 1,946,000 | 2,131,000 | 3,098,000 | 3,065,000 | 2,741,000 | 2,649,000 | 2,601,000 | 2,722,000 | 3,121,000 |
| 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 |
| Net profit margin | 8.83% | 6.13% | 5.69% | 5.70% | 2.16% | 8.40% | 7.89% | 8.37% | 7.66% | 7.32% | 8.26% | 8.00% | 8.87% | 12.91% | 13.24% | 13.12% | 13.37% | 13.30% | 13.47% | 13.82% |
December 31, 2024 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $3,011,000K ÷ $34,102,000K
= 8.83%
Cummins Inc's net profit margin has shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The net profit margin started at 13.82% in March 2020, gradually declining to 7.32% by September 30, 2022. There was a noticeable dip to 2.16% by December 31, 2023, before recovering to 8.83% by December 31, 2024.
The net profit margin represents the company's profitability, indicating the proportion of revenue that translates into profit after accounting for all expenses. The decreasing trend observed in the latter half of the period suggests challenges in maintaining profitability, possibly due to factors such as increasing costs, declining sales, or inefficiencies in operations.
It is important for Cummins Inc to closely monitor its profitability and take necessary measures to improve efficiency, control costs, and optimize revenue generation to ensure sustained financial performance in the future.
Peer comparison
Dec 31, 2024