Cummins Inc (CMI)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,761,000 | 2,929,000 | 2,706,000 | 2,269,000 | 2,700,000 |
| Revenue | US$ in thousands | 34,065,000 | 28,074,000 | 24,021,000 | 19,811,000 | 23,571,000 |
| Operating profit margin | 5.17% | 10.43% | 11.27% | 11.45% | 11.45% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,761,000K ÷ $34,065,000K
= 5.17%
The operating profit margin of Cummins Inc. has shown relatively stable performance over the past five years. In 2023, the operating profit margin stood at 9.64%, a slight increase from the prior year's margin of 9.54%. Despite this uptick, the margin remains in line with historical levels observed between 2019 and 2021. The company's ability to maintain an operating profit margin above 9% showcases its efficiency in managing operating expenses relative to its revenue, though there has been a slight downward trend since 2019 when the margin was at a higher level of 10.60%. Overall, Cummins Inc. has demonstrated consistency in its operating profit margin, albeit with some minor fluctuations in recent years.
Peer comparison
Dec 31, 2023