Cummins Inc (CMI)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 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 | 3,839,000 | 4,107,000 | 4,145,000 | 4,885,000 |
| Revenue (ttm) | US$ in thousands | 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 | 23,571,000 | 24,119,000 | 24,294,000 | 24,205,000 |
| Pretax margin | 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% | 16.29% | 17.03% | 17.06% | 20.18% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,521,000K ÷ $34,065,000K
= 4.46%
Cummins Inc.'s pretax margin has displayed fluctuations over the past eight quarters. The company's pretax margin was relatively lower in Q4 2023 at 4.77% compared to the previous quarters, which had higher pretax margins ranging from 9.77% to 10.92%. This decline in Q4 2023 may signify challenges or changes in the company's cost structure or revenue generation during that period.
The company's pretax margin was strongest in Q3 and Q2 2022, recording margins of 10.58% and 10.47% respectively, suggesting efficient cost management and revenue generation during those periods. However, it is noteworthy that these margins have not been sustained in the more recent quarters.
While the trend in pretax margin shows some variability, it is essential to consider other financial metrics and qualitative factors to gain a comprehensive understanding of Cummins Inc.'s overall financial performance and operational efficiency.
Peer comparison
Dec 31, 2023