Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Cummins's Pre-Tax Income for the
three
months ended in Dec. 2024 was $662 Mil. Cummins's Revenue for the
three
months ended in Dec. 2024 was $8,447 Mil. Therefore, Cummins's pretax margin for the quarter that ended in Dec. 2024 was 7.84%.
The historical rank and industry rank for Cummins's Pretax Margin % or its related term are showing as below:
CMI'
s Pretax Margin % Range Over the Past 10 Years
Min: 4.77 Med: 11.52 Max: 14.38
Current: 14.38
CMI's Pretax Margin % is ranked better than 79% of 2972
companies
in the Industrial Products industry
Industry Median: 6.41
vs CMI: 14.38
Cummins Pretax Margin % Historical Data
The historical data trend for Cummins's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Cummins's Pretax Margin %
For the Specialty Industrial Machinery subindustry, Cummins's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cummins's Pretax Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cummins's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Cummins's Pretax Margin % falls into.
Cummins Pretax Margin % Calculation
Pretax margin - also known as pretax profit margin is the ratio of Pretax Income divided by net sales or Revenue, usually presented in percent.
Cummins's Pretax Margin for the fiscal year that ended in Dec. 2024 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cummins (NYSE:CMI) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Cummins Pretax Margin % Related Terms
Thank you for viewing the detailed overview of Cummins's Pretax Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Cummins is the top manufacturer of diesel engines used in commercial trucks, off-highway machinery, and railroad locomotives, in addition to standby and prime power generators. The company also sells powertrain components, which include transmissions, turbochargers, aftertreatment systems, and fuel systems. Cummins is in the unique position of competing with its primary customers, heavy-duty truck manufacturers, who make and aggressively market their own engines. Despite robust competition across all its segments and increasing government regulation of carbon emissions, Cummins has maintained its leadership position in the industry.
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