Cummins Inc (CMI)
Return on total capital
| 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 interest and tax (EBIT) (ttm) | US$ in thousands | 1,761,000 | 3,775,000 | 3,451,000 | 3,351,000 | 2,929,000 | 2,622,000 | 2,662,000 | 2,500,000 | 2,706,000 | 2,840,000 | 2,844,000 | 2,445,000 | 2,269,000 | 1,994,000 | 2,023,000 | 2,535,000 | 2,700,000 | 3,077,000 | 3,181,000 | 3,055,000 |
| Long-term debt | US$ in thousands | 6,375,000 | 6,939,000 | 7,280,000 | 7,386,000 | 7,400,000 | 7,635,000 | 4,109,000 | 4,060,000 | 4,461,000 | 4,285,000 | 4,304,000 | 4,338,000 | 4,665,000 | 4,532,000 | 4,241,000 | 3,661,000 | 2,706,000 | 3,031,000 | 2,535,000 | 2,688,000 |
| 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 |
| Return on total capital | 11.57% | 21.45% | 19.59% | 19.70% | 17.89% | 16.37% | 20.72% | 20.01% | 21.46% | 22.96% | 23.37% | 19.64% | 17.83% | 16.30% | 17.69% | 23.63% | 26.44% | 28.38% | 29.42% | 29.07% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,761,000K ÷ ($6,375,000K + $8,850,000K)
= 11.57%
Cummins Inc. has shown a consistently positive trend in its return on total capital over the past eight quarters, ranging from 16.62% in Q3 2022 to 24.41% in Q4 2023. This indicates that the company has been effectively utilizing its total capital to generate profits. The company's return on total capital has generally been above 18%, with some quarters showing improvements, such as the significant increase from 16.62% in Q3 2022 to 21.09% in Q2 2022. Overall, Cummins Inc.'s performance in terms of return on total capital reflects a strong ability to generate profits relative to its total capital employed.
Peer comparison
Dec 31, 2023