Cummins Return On Assets from 2010 to 2024

CMI Stock  USD 292.70  2.30  0.79%   
Cummins' Return On Assets are decreasing with slightly volatile movements from year to year. Return On Assets are estimated to finish at 0.04 this year. Return On Assets is a profitability ratio that indicates the percentage of profit Cummins earns in relation to its overall resources. It is calculated by dividing net income by total assets. View All Fundamentals
 
Return On Assets  
First Reported
2010-12-31
Previous Quarter
0.02296516
Current Value
0.0393
Quarterly Volatility
0.03779823
 
Credit Downgrade
 
Yuan Drop
 
Covid
Check Cummins financial statements over time to gain insight into future company performance. You can evaluate financial statements to find patterns among Cummins main balance sheet or income statement drivers, such as Depreciation And Amortization of 1.1 B, Interest Expense of 393.8 M or Selling General Administrative of 3.4 B, as well as many exotic indicators such as Price To Sales Ratio of 0.54, Dividend Yield of 0.0282 or PTB Ratio of 4.03. Cummins financial statements analysis is a perfect complement when working with Cummins Valuation or Volatility modules.
  
This module can also supplement Cummins' financial leverage analysis and stock options assessment as well as various Cummins Technical models . Check out the analysis of Cummins Correlation against competitors.
For more detail on how to invest in Cummins Stock please use our How to Invest in Cummins guide.

Latest Cummins' Return On Assets Growth Pattern

Below is the plot of the Return On Assets of Cummins over the last few years. It is a profitability ratio that indicates the percentage of profit a company earns in relation to its overall resources. It is calculated by dividing net income by total assets. Cummins' Return On Assets historical data analysis aims to capture in quantitative terms the overall pattern of either growth or decline in Cummins' overall financial position and show how it may be relating to other accounts over time.
Return On Assets10 Years Trend
Slightly volatile
   Return On Assets   
       Timeline  

Cummins Return On Assets Regression Statistics

Arithmetic Mean0.09
Geometric Mean0.08
Coefficient Of Variation43.82
Mean Deviation0.03
Median0.09
Standard Deviation0.04
Sample Variance0
Range0.1354
R-Value(0.47)
Mean Square Error0
R-Squared0.22
Significance0.08
Slope(0)
Total Sum of Squares0.02

Cummins Return On Assets History

2024 0.0393
2023 0.023
2022 0.071
2021 0.0899
2020 0.0791
2018 0.11
2017 0.0553

About Cummins Financial Statements

There are typically three primary documents that fall into the category of financial statements. These documents include Cummins income statement, its balance sheet, and the statement of cash flows. Cummins investors use historical funamental indicators, such as Cummins's Return On Assets, to determine how well the company is positioned to perform in the future. Although Cummins investors may use each financial statement separately, they are all related. The changes in Cummins's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Cummins's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. We offer a historical overview of the basic patterns found on Cummins Financial Statements. Understanding these patterns can help to make the right decision on long term investment in Cummins. Please read more on our technical analysis and fundamental analysis pages.
Last ReportedProjected for Next Year
Return On Assets 0.02  0.04 

Pair Trading with Cummins

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cummins position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cummins will appreciate offsetting losses from the drop in the long position's value.

Moving together with Cummins Stock

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Moving against Cummins Stock

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The ability to find closely correlated positions to Cummins could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cummins when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cummins - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cummins to buy it.
The correlation of Cummins is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cummins moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cummins moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cummins can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Cummins offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cummins' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cummins Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cummins Stock:
Check out the analysis of Cummins Correlation against competitors.
For more detail on how to invest in Cummins Stock please use our How to Invest in Cummins guide.
You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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When running Cummins' price analysis, check to measure Cummins' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cummins is operating at the current time. Most of Cummins' value examination focuses on studying past and present price action to predict the probability of Cummins' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cummins' price. Additionally, you may evaluate how the addition of Cummins to your portfolios can decrease your overall portfolio volatility.
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Is Cummins' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cummins. If investors know Cummins will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cummins listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.628
Dividend Share
6.5
Earnings Share
5.15
Revenue Per Share
240.402
Quarterly Revenue Growth
0.099
The market value of Cummins is measured differently than its book value, which is the value of Cummins that is recorded on the company's balance sheet. Investors also form their own opinion of Cummins' value that differs from its market value or its book value, called intrinsic value, which is Cummins' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cummins' market value can be influenced by many factors that don't directly affect Cummins' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cummins' value and its price as these two are different measures arrived at by different means. Investors typically determine if Cummins is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cummins' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.