Cummins Inc (CMI)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 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 | 2,700,000 | 3,077,000 | 3,181,000 | 3,055,000 |
| Total assets | US$ in thousands | 32,005,000 | 32,097,000 | 31,735,000 | 31,433,000 | 30,299,000 | 29,769,000 | 24,477,000 | 24,122,000 | 23,710,000 | 23,063,000 | 22,608,000 | 22,962,000 | 22,624,000 | 21,568,000 | 20,314,000 | 20,076,000 | 19,737,000 | 20,346,000 | 20,254,000 | 19,846,000 |
| Operating ROA | 5.50% | 11.76% | 10.87% | 10.66% | 9.67% | 8.81% | 10.88% | 10.36% | 11.41% | 12.31% | 12.58% | 10.65% | 10.03% | 9.25% | 9.96% | 12.63% | 13.68% | 15.12% | 15.71% | 15.39% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,761,000K ÷ $32,005,000K
= 5.50%
Cummins Inc.'s operating return on assets (operating ROA) has exhibited a generally positive trend over the past eight quarters, reflecting the company's ability to generate earnings from its operational assets. The operating ROA has shown an increasing pattern from Q1 2022 to Q4 2023, indicating improving efficiency in utilizing its assets to generate operating income.
The company's operating ROA ranged from 7.94% in Q3 2022 to 10.26% in Q4 2023. This suggests that Cummins Inc. has been effectively managing its assets to generate operating profits. The higher the operating ROA, the better, as it indicates that the company is efficiently utilizing its assets to generate profits.
Overall, the upward trend in Cummins Inc.'s operating ROA over the past eight quarters is a positive signal for investors and stakeholders, indicating the company's operational efficiency and profitability improvements.
Peer comparison
Dec 31, 2023