Cummins Inc (CMI)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 32,005,000 | 30,299,000 | 23,710,000 | 22,624,000 | 19,737,000 |
| Operating ROA | 5.50% | 9.67% | 11.41% | 10.03% | 13.68% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,761,000K ÷ $32,005,000K
= 5.50%
Operating return on assets (ROA) for Cummins Inc. has exhibited some fluctuations in recent years. In 2023, the operating ROA improved to 10.26%, up from 8.84% in 2022 but slightly lower than the 9.30% in 2021. However, it remains higher than the 8.14% in 2020. Notably, the operating ROA for 2019 was relatively higher at 12.66%. Overall, Cummins Inc. has shown a generally positive trend in operating ROA, with some variability year over year. It indicates the company's ability to generate operating profits from its assets, although management may need to focus on sustaining or further improving this performance in the future to enhance overall financial health and efficiency.
Peer comparison
Dec 31, 2023