Cummins Inc (CMI)
Net 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 3,273,000 | 3,506,000 | 3,576,000 | 4,341,000 |
| 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 |
| Net profit margin | 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% | 13.89% | 14.54% | 14.72% | 17.93% |
December 31, 2023 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $735,000K ÷ $34,065,000K
= 2.16%
To analyze Cummins Inc.'s net profit margin over the given periods, we observe fluctuations in the profitability metric. In Q4 2023, the net profit margin decreased to 2.16% from the previous quarter's 8.40%, indicating a significant decline in profitability. This may raise concerns regarding the company's ability to effectively control costs and generate profits during this period.
Comparing the Q4 2023 net profit margin to the same period in the previous year, there was a slight decrease from 7.66% to 2.16%. This decline could suggest various factors affecting profitability, such as changes in expenses, pricing strategies, or revenue generation.
Looking at the broader trend, the net profit margin has shown some volatility across the quarters, ranging from 7.32% to 8.40% in recent quarters. While the company maintained relatively healthy profitability levels throughout the periods, the fluctuations indicate potential challenges in sustaining consistent profitability over time.
Overall, a detailed analysis of Cummins Inc.'s net profit margin reveals fluctuations in profitability levels, highlighting the importance of closely monitoring cost management and revenue generation strategies to ensure sustained financial performance in the future.
Peer comparison
Dec 31, 2023