Cummins Operating Margin

CMI Stock  USD 660.75  3.82  0.58%   
Cummins' latest Operating Margin figure appears below alongside the formula and what it measures. Both the calculation method and reported value draw from regulatory filings. Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Operating Margin

 = 

Operating Income

Revenue

X

100

=

0.11

A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors. The current Operating Margin for Cummins reflects the latest reporting cycle. The metric is captured within the context of available data.

Latest Cummins Operating Profit Margin Growth Pattern

Operating Profit Margin10 Years Trend
Moderate Variation
   Operating Profit Margin   
       Timeline  

Operating Profit Margin Trend Statistics

Cummins reports Operating Profit Margin with a coefficient of variation of 22.0% over 7 periods, reflecting moderate dispersion around the mean. R-squared at 0.01 is consistent with no statistically meaningful linear trend.
Arithmetic Mean 0.11
Geometric Mean 0.11
Coefficient Of Variation 21.99
Mean Deviation 0.01
Median 0.11
Standard Deviation 0.02
Sample Variance 0.0006
Range0.097
R-Value-0.09
Mean Square Error 0.0006
R-Squared 0.01
Significance 0.73
Slope-0.0004
Total Sum of Squares 0.01

Cummins Operating Profit Margin History

Cummins' Operating Profit Margin record extends from 2010 to 2023, covering 7 observations from 0.0516 to 0.0517.
2023 0.0517
2022 0.1
2015 0.11
2013 0.12
2012 0.13
2011 0.15
2010 0.0516

Correlation of Operating Profit Margin With Other Accounts

The table presents linear correlations between Cummins' Operating Profit Margin and adjacent financial accounts. Positive values indicate co-directional movement; negative values indicate inverse movement. These relationships describe association, not causation.

Related Fundamentals

Operating Margin Driver Correlations

The correlation structure highlights how Operating Margin relates to Cummins' primary financial indicators. Strong positive values indicate co-directional movement; negative values indicate inverse relationships.
Competition

Cummins Pretax Profit Margin

Pretax Profit Margin

0.14
Pretax Profit Margin stood at 11.77% as of December 31, 2025.

Fundamental Drivers Relationships

Operating Profit Margin stood at 12.00% as of December 31, 2025. Related reported metrics: Other Operating Expenses at 31.16 Billion as of December 31, 2025; Operating Income at 4.19 Billion as of December 31, 2025.

Operating Margin Peer Comparison

Analyzing Cummins' Operating Margin relative to comparable stocks provides a direct measure of competitive positioning. Investors use this approach to identify whether Cummins' Operating Margin is stronger or weaker than comparable stocks.
Cummins is currently under evaluation for operating margin among direct rivals.

Important Fundamentals

Financial Metrics, Fundamentals & Methodology

Cummins is best evaluated by comparing cash generation capacity with funding needs and reinvestment demands. Capital allocation strategy influences how much long-term value can be retained for shareholders. Latest reported fundamentals for Cummins include revenue of 33.67 B, positive EPS of 20.48, operating margin of 10.92%, current ratio of 1.37 as of the latest reporting period.

Cummins figures are aggregated from periodic company reporting and market reference feeds and normalized across reporting formats. Professional analyst research is incorporated when coverage is available. Accounting-line values follow GAAP or IFRS structures as published in issuer filings.

Editorial review and methodology oversight provided by: Gabriel Shpitalnik, Member of Macroaxis Editorial Board