Cummins Inc (CMI)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 3,273,000 | 3,506,000 | 3,576,000 | 4,341,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 7,507,000 | 7,810,000 | 8,278,000 | 7,820,000 |
| ROE | 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% | 43.60% | 44.89% | 43.20% | 55.51% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $735,000K ÷ $8,850,000K
= 8.31%
Cummins Inc.'s return on equity (ROE) has demonstrated some fluctuations over the past eight quarters. In Q4 2023, the ROE was at 8.31%, a significant decrease compared to the previous quarter's ROE of 26.24% in Q3 2023. This suggests a sharp decline in the company's ability to generate profits from its shareholders' equity during that period.
However, the ROE in Q4 2023 still surpassed the ROE figures from Q1 and Q2 2023, indicating a slight improvement from earlier in the year. Looking further back, the ROE has generally shown an upward trend when comparing year-over-year data. For instance, in Q4 2022, the ROE was 23.97%, which has been increasing steadily to reach the peak of 26.24% in Q3 2023.
Overall, Cummins Inc.'s ROE has displayed variability in recent quarters, reflecting changes in the company's profitability relative to its shareholders' equity. It is essential for stakeholders to carefully monitor these fluctuations and assess the company's operational performance and efficiency in utilizing its equity capital.
Peer comparison
Dec 31, 2023