Cummins Inc (CMI)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 3,011,000 | 2,097,000 | 1,944,000 | 1,938,000 | 735,000 | 2,797,000 | 2,541,000 | 2,523,000 | 2,151,000 | 1,914,000 | 2,048,000 | 1,946,000 | 2,131,000 | 3,098,000 | 3,065,000 | 2,741,000 | 2,649,000 | 2,601,000 | 2,722,000 | 3,121,000 |
| Total assets | US$ in thousands | 31,540,000 | 32,052,000 | 31,320,000 | 31,827,000 | 32,005,000 | 32,097,000 | 31,735,000 | 31,433,000 | 30,299,000 | 29,769,000 | 24,477,000 | 24,122,000 | 23,710,000 | 23,063,000 | 22,608,000 | 22,962,000 | 22,624,000 | 21,568,000 | 20,314,000 | 20,076,000 |
| ROA | 9.55% | 6.54% | 6.21% | 6.09% | 2.30% | 8.71% | 8.01% | 8.03% | 7.10% | 6.43% | 8.37% | 8.07% | 8.99% | 13.43% | 13.56% | 11.94% | 11.71% | 12.06% | 13.40% | 15.55% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $3,011,000K ÷ $31,540,000K
= 9.55%
Cummins Inc's Return on Assets (ROA) has shown varying trends over the period analyzed. The ROA started at a strong level of 15.55% as of March 31, 2020, indicating efficient utilization of assets to generate profits. However, there was a gradual decrease in ROA over the next few quarters, reaching a low of 6.43% by September 30, 2022. This may suggest challenges in effectively utilizing assets to generate profits during this period.
Subsequently, there was a slight improvement in ROA, with percentages ranging between 6.09% to 9.55% until December 31, 2024. It is worth noting that the ROA fluctuated during this time, indicating potential volatility in the company's profitability in relation to its asset base.
Overall, the trend in Cummins Inc's ROA suggests periods of strong asset utilization followed by fluctuations and some challenges in maintaining profitability relative to its asset base. Further investigation into the factors influencing these fluctuations may provide insights into the company's operational efficiency and profitability sustainability.
Peer comparison
Dec 31, 2024