Cummins Inc (CMI)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,521,000 | 2,787,000 | 2,718,000 | 2,316,000 | 2,826,000 |
| Revenue | US$ in thousands | 34,065,000 | 28,074,000 | 24,021,000 | 19,811,000 | 23,571,000 |
| Pretax margin | 4.46% | 9.93% | 11.32% | 11.69% | 11.99% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,521,000K ÷ $34,065,000K
= 4.46%
Cummins Inc.'s pretax margin has shown a declining trend over the past five years. The company's pretax margin was 4.77% at the end of 2023, down from 10.04% in 2022, 11.45% in 2021, 11.80% in 2020, and 12.02% in 2019. This downward trend indicates a decrease in the company's ability to generate profits before accounting for taxes relative to its total revenue. The declining pretax margin may signify challenges in controlling costs or a decrease in sales revenue compared to previous years. Further analysis is warranted to understand the factors contributing to this trend and to assess the company's overall financial performance.
Peer comparison
Dec 31, 2023