Cummins Inc (CMI)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 31,540,000 | 32,052,000 | 31,320,000 | 31,827,000 | 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 |
| Operating ROA | 11.89% | 5.63% | 5.45% | 5.21% | 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% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $3,750,000K ÷ $31,540,000K
= 11.89%
Operating return on assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operating activities relative to the assets it utilizes. Looking at the data provided for Cummins Inc, the trend of Operating ROA fluctuates over the quarters from March 31, 2020, to December 31, 2024.
The Operating ROA for Cummins Inc ranged from a high of 12.63% on March 31, 2020, to a low of 5.21% on March 31, 2024. Generally, the company maintained a relatively healthy Operating ROA above 9% for most quarters during the period. Notable peaks in the Operating ROA were observed in June 30, 2021, and June 30, 2022, at 12.58% and 10.88%, respectively.
However, there were also periods of decline in Operating ROA, such as in the quarters ending on September 30, 2022, and December 31, 2023, where the ratios dropped to 8.81% and 5.50%, respectively. It is important to investigate further the factors influencing these fluctuations in performance.
Overall, the trend in Cummins Inc's Operating ROA suggests varying levels of efficiency in utilizing its assets to generate operating profits over the quarters, with the need for closer examination to understand the underlying reasons for these fluctuations and to maintain a sustainable performance in the future.
Peer comparison
Dec 31, 2024