Cummins Net Invested Capital from 2010 to 2024

CMI Stock  USD 294.65  0.04  0.01%   
Cummins' Net Invested Capital is increasing with slightly volatile movements from year to year. Net Invested Capital is predicted to flatten to about 13.5 B. Net Invested Capital is the total amount of capital invested in a company, including both equity and debt, minus any cash or cash equivalents. View All Fundamentals
 
Net Invested Capital  
First Reported
2010-12-31
Previous Quarter
15.5 B
Current Value
13.5 B
Quarterly Volatility
2.6 B
 
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 Short Term Coverage Ratios of 1.85, Price Earnings Ratio of 48.5 or Price To Sales Ratio of 0.54. 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' Net Invested Capital Growth Pattern

Below is the plot of the Net Invested Capital of Cummins over the last few years. It is the total amount of capital invested in a company, including both equity and debt, minus any cash or cash equivalents. Cummins' Net Invested Capital 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.
Net Invested Capital10 Years Trend
Slightly volatile
   Net Invested Capital   
       Timeline  

Cummins Net Invested Capital Regression Statistics

Arithmetic Mean10,973,226,667
Geometric Mean10,731,374,668
Coefficient Of Variation23.36
Mean Deviation2,121,902,222
Median9,265,000,000
Standard Deviation2,563,838,389
Sample Variance6573267.3T
Range7.6B
R-Value0.81
Mean Square Error2464160.5T
R-Squared0.65
Significance0.0003
Slope462,877,857
Total Sum of Squares92025742T

Cummins Net Invested Capital History

202413.5 B
202315.5 B
202216.8 B
202112.6 B
202012.2 B
20199.9 B
20189.8 B

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 Net Invested Capital, 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 2024
Net Invested Capital15.5 B13.5 B

Cummins Investors Sentiment

The influence of Cummins' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Cummins. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Cummins' public news can be used to forecast risks associated with an investment in Cummins. The trend in average sentiment can be used to explain how an investor holding Cummins can time the market purely based on public headlines and social activities around Cummins. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Cummins' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Cummins' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Cummins' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Cummins.

Cummins Implied Volatility

    
  20.56  
Cummins' implied volatility exposes the market's sentiment of Cummins stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Cummins' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Cummins stock will not fluctuate a lot when Cummins' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Cummins in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Cummins' short interest history, or implied volatility extrapolated from Cummins options trading.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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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
5.16
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.