Cummins Inc (CMI)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 3,846,000 | 2,878,000 | 2,713,000 | 2,694,000 | 1,521,000 | 3,554,000 | 3,309,000 | 3,227,000 | 2,787,000 | 2,530,000 | 2,599,000 | 2,516,000 | 2,718,000 | 3,696,000 | 3,711,000 | 3,313,000 | 3,176,000 | 3,068,000 | 3,146,000 | 3,638,000 |
| Revenue (ttm) | US$ in thousands | 34,102,000 | 34,198,000 | 34,173,000 | 34,015,000 | 34,065,000 | 33,292,000 | 32,194,000 | 30,142,000 | 28,074,000 | 26,154,000 | 24,789,000 | 24,314,000 | 24,021,000 | 24,001,000 | 23,151,000 | 20,892,000 | 19,811,000 | 19,559,000 | 20,209,000 | 22,578,000 |
| Pretax margin | 11.28% | 8.42% | 7.94% | 7.92% | 4.46% | 10.68% | 10.28% | 10.71% | 9.93% | 9.67% | 10.48% | 10.35% | 11.32% | 15.40% | 16.03% | 15.86% | 16.03% | 15.69% | 15.57% | 16.11% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $3,846,000K ÷ $34,102,000K
= 11.28%
Cummins Inc's pretax margin has shown fluctuations over the past years, ranging from a high of 16.11% in March 2020 to a low of 4.46% in December 2023. The company's pretax margin remained relatively stable around the 15-16% range from March 2020 to June 2021 before experiencing a decline in the latter half of 2021 and continuing into 2022.
There was a noticeable drop in the pretax margin in December 2021, reaching 11.32%, followed by a further decline to 9.67% in September 2022. However, there was a slight uptick in the pretax margin in the subsequent quarters of 2023 and early 2024, reaching 10.71% in March 2023.
Despite this improvement, there was a significant decrease in the pretax margin in December 2023, dropping to 4.46%, which marked a notable downturn in the company's profitability. Subsequently, there was a recovery in the pretax margin in the following quarters, particularly in December 2024, where it increased to 11.28%.
Overall, Cummins Inc's pretax margin demonstrates varying performance levels over the analyzed period, with periods of stability, decline, and recovery. Investors and analysts may want to further investigate the factors contributing to these fluctuations and assess the company's strategic decisions impacting its profitability.
Peer comparison
Dec 31, 2024