Cummins Inc (CMI)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,750,000 | 1,761,000 | 2,929,000 | 2,706,000 | 2,269,000 |
| Total assets | US$ in thousands | 31,540,000 | 32,005,000 | 30,299,000 | 23,710,000 | 22,624,000 |
| Operating ROA | 11.89% | 5.50% | 9.67% | 11.41% | 10.03% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $3,750,000K ÷ $31,540,000K
= 11.89%
The operating return on assets (ROA) of Cummins Inc has shown some fluctuations over the past five years. In December 2020, the operating ROA was 10.03%, which increased to 11.41% by December 2021, indicating improved operational efficiency and profitability. However, there was a slight decline in the operating ROA to 9.67% by December 2022.
The trend reversed significantly by December 2023 when the operating ROA dropped to 5.50%, possibly signaling operational challenges or decreased profitability during that period. However, there was a noteworthy recovery in performance by December 2024 with the operating ROA rising to 11.89%, surpassing the levels seen in previous years.
Overall, the operating ROA of Cummins Inc has experienced fluctuations, highlighting the company's ability to generate profits from its assets and operations. It is important for stakeholders to further investigate the factors driving these fluctuations to assess the company's operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2024