Cummins Inc (CMI)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,946,000 | 735,000 | 2,151,000 | 2,131,000 | 1,789,000 |
| Total assets | US$ in thousands | 31,540,000 | 32,005,000 | 30,299,000 | 23,710,000 | 22,624,000 |
| ROA | 12.51% | 2.30% | 7.10% | 8.99% | 7.91% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $3,946,000K ÷ $31,540,000K
= 12.51%
Cummins Inc's return on assets (ROA) has fluctuated over the past five years. In 2020, the ROA was 7.91%, indicating that for every dollar of assets, the company generated a profit of 7.91 cents. The following year, the ROA increased to 8.99%, showing improved efficiency in asset utilization.
However, in 2022, the ROA declined to 7.10%, suggesting a lower return on the company's assets compared to the previous year. Further, in 2023, the ROA dropped significantly to 2.30%, indicating a substantial decrease in the company's ability to generate profit from its assets.
Nevertheless, in 2024, Cummins Inc experienced a sharp increase in its ROA to 12.51%, signaling a significant improvement in profitability relative to its asset base. Overall, the trend in Cummins Inc's ROA depicts some variability, highlighting the importance of closely monitoring the company's asset management and operational efficiency to ensure sustained financial performance.
Peer comparison
Dec 31, 2024