Cummins Inc (CMI)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 4,781,000 | 1,521,000 | 2,787,000 | 2,718,000 | 2,316,000 |
| Revenue | US$ in thousands | 34,102,000 | 34,065,000 | 28,074,000 | 24,021,000 | 19,811,000 |
| Pretax margin | 14.02% | 4.46% | 9.93% | 11.32% | 11.69% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $4,781,000K ÷ $34,102,000K
= 14.02%
The pretax margin of Cummins Inc has shown some fluctuations over the past five years. In December 2020, the pretax margin stood at 11.69%, slightly dipping to 11.32% by December 2021. However, by the end of December 2022, there was a more notable decrease to 9.93%. This downward trend continued into December 2023, with the pretax margin dropping significantly to 4.46%.
Despite this decline, Cummins Inc managed to rebound strongly by December 2024, achieving a pretax margin of 14.02%, which is higher than the initial figure in December 2020. Overall, while there were fluctuations in the pretax margin over the period, the company demonstrated resilience and capability to improve its profitability within a relatively short timeframe.
Peer comparison
Dec 31, 2024