Cummins Inc (CMI)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 3,750,000 | 1,806,000 | 1,706,000 | 1,658,000 | 1,761,000 | 3,775,000 | 3,451,000 | 3,351,000 | 2,929,000 | 2,622,000 | 2,662,000 | 2,500,000 | 2,706,000 | 2,840,000 | 2,844,000 | 2,445,000 | 2,269,000 | 1,994,000 | 2,023,000 | 2,535,000 |
| 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 |
| Operating profit margin | 11.00% | 5.28% | 4.99% | 4.87% | 5.17% | 11.34% | 10.72% | 11.12% | 10.43% | 10.03% | 10.74% | 10.28% | 11.27% | 11.83% | 12.28% | 11.70% | 11.45% | 10.19% | 10.01% | 11.23% |
December 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $3,750,000K ÷ $34,102,000K
= 11.00%
Cummins Inc's operating profit margin has shown fluctuations over the reporting periods from March 31, 2020, to December 31, 2024. The operating profit margin started at 11.23% in March 2020, reached its peak at 12.28% in June 2021, and then gradually declined to 4.87% in March 2024. This significant decrease could be a cause for concern, as a lower operating profit margin indicates that the company is generating less profit from its core business operations.
However, there was a notable improvement in the operating profit margin to 11.00% by December 31, 2024, which might indicate a positive shift in the company's operational efficiency and profitability.
Overall, it is important for Cummins Inc to closely monitor and analyze the factors influencing its operating profit margin to ensure sustainable profitability and effective management of its operating costs and revenue generation.
Peer comparison
Dec 31, 2024