Cummins Inc (CMI)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 10,271,000 | 10,315,000 | 9,551,000 | 9,067,000 | 8,850,000 | 10,658,000 | 10,337,000 | 9,623,000 | 8,975,000 | 8,380,000 | 8,738,000 | 8,436,000 | 8,146,000 | 8,082,000 | 7,866,000 | 8,109,000 | 8,062,000 | 7,700,000 | 7,192,000 | 7,068,000 |
| ROE | 29.32% | 20.33% | 20.35% | 21.37% | 8.31% | 26.24% | 24.58% | 26.22% | 23.97% | 22.84% | 23.44% | 23.07% | 26.16% | 38.33% | 38.97% | 33.80% | 32.86% | 33.78% | 37.85% | 44.16% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $3,011,000K ÷ $10,271,000K
= 29.32%
Cummins Inc's return on equity (ROE) has shown fluctuations over the specified period. ROE measures the company's profitability by evaluating how efficiently it is utilizing its equity to generate profits.
From March 31, 2020, to December 31, 2020, Cummins Inc exhibited a gradual decline in ROE from 44.16% to 32.86%. This was followed by an increase in ROE to 38.97% by June 30, 2021, indicating improved profitability. However, the trend reversed in the subsequent periods, with a decline in ROE to 22.84% by September 30, 2022.
Cummins Inc experienced a notable increase in ROE to 26.24% by September 30, 2023, suggesting a positive turn in profitability. Yet, the ROE dropped significantly to 8.31% by December 31, 2023, signaling a potential issue with profitability during that period.
The company managed to recover slightly, with an ROE of 29.32% by December 31, 2024. Overall, Cummins Inc's ROE displayed volatility during the analyzed period, indicating varying levels of profitability and efficiency in utilizing equity to generate returns.
Peer comparison
Dec 31, 2024