GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Cummins India Ltd (BOM:500480) » Definitions » Profitability Rank

Cummins India (BOM:500480) Profitability Rank : 9 (As of Mar. 2024)


View and export this data going back to 1991. Start your Free Trial

What is Cummins India Profitability Rank?

Cummins India has the Profitability Rank of 9. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Cummins India's Operating Margin % for the quarter that ended in Mar. 2024 was 21.84%. As of today, Cummins India's Piotroski F-Score is 7.


Competitive Comparison of Cummins India's Profitability Rank

For the Specialty Industrial Machinery subindustry, Cummins India's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 India's Profitability Rank Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Cummins India's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Cummins India's Profitability Rank falls into.



Cummins India Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Cummins India has the Profitability Rank of 9. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Cummins India's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=4961.3 / 22718.8
=21.84 %

* 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.

2. Piotroski F-Score

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Cummins India has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Cummins India Ltd operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank


Cummins India Profitability Rank Related Terms

Thank you for viewing the detailed overview of Cummins India's Profitability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Cummins India (BOM:500480) Business Description

Traded in Other Exchanges
Address
Cummins India Office Campus, Tower A, 5th Floor, Survey No. 21, Balewadi, Pune, MH, IND, 411045
Cummins India Ltd is a group of businesses that design and manufacture service engines and related technologies. The company produces fuel systems, air handling, filtration, emission solutions, and electrical power generation systems in facilities across India. It has three business units: Engine Business, Power Systems Business, and Distribution Business. Its engines power a wide range of systems, including trucks, construction equipment, military components, railways, mining, and power generation applications. In addition, Cummins India provides aftermarket support and expertise to customers in different regions. The revenue is derived from India, but the company exports products to North America, Europe, and other Asian countries.

Cummins India (BOM:500480) Headlines

No Headlines