Cummins

Cummins ROCE

The Return on Capital Employed (ROCE) of Cummins (CMI) as of Nov 6, 2026 is 29.71 %. In the previous year, Return on Capital Employed (ROCE) was 34.79 % — a change of -14.61% (lower).

ROCE

29.71 %

YoY

-14.61%

Last updated:

In 2025, Cummins's return on capital employed (ROCE) was 29.71 %, a -14.61% increase from the 34.79 % ROCE in the previous year.

The Cummins ROCE history

  • 3 Years

  • 10 Years

  • 25 Years

  • Max

ROCE
Date
ROCE
Jan 1, 2018
33.73 USD
Jan 1, 2019
32.77 USD
Jan 1, 2020
25.53 USD
Jan 1, 2021
29.96 USD
Jan 1, 2022
28.65 USD
Jan 1, 2023
17.78 USD
Jan 1, 2024
34.79 USD
Jan 1, 2025
29.71 USD
The Cummins ROCE history
YEARROCEYoY
29.71 %-14.61%
34.79 %+95.66%
17.78 %-37.93%
28.65 %-4.40%
29.96 %+17.37%
25.53 %-22.09%
32.77 %-2.85%
33.73 %+14.41%
29.48 %+9.31%
26.97 %+1.62%
26.54 %-9.17%
29.22 %—

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Cummins Stock analysis

What does Cummins do? Cummins Inc is a leading manufacturer of diesel engines, parts, and accessories, and also produces alternative and renewable energy systems. The company was founded in 1919 by William Glanton Irwin, Clessie Lyle Cummins, and others, with its headquarters in Columbus, Indiana, and now has subsidiaries in over 190 countries worldwide. The company was developed by Clessie Cummins, who was an engineer and racer. He had the idea to develop a more efficient diesel engine than those on the market at the time. Together with William Irwin and other co-founders, they established the Cummins Engine Company and developed engines from the beginning that were more reliable, efficient, and economical than their predecessors. Since its founding, Cummins Inc has developed a wide range of products, including diesel engines for heavy trucks, corporate applications such as power generation units, marine and rail propulsion, and alternative fuel systems. One of Cummins' most well-known products is the Dodge Ram Pickup Truck, equipped with the Cummins 6.7L turbo-diesel engine. Cummins Inc's strategy is to provide customers with comprehensive service, providing all the key attributes they need to be successful. By dividing the company into various segments such as commercial vehicles, power generation systems, as well as smaller engines and parts, it can offer customers a comprehensive range of products and services. The different divisions of the company work closely together to ensure that the customer receives a complete solution they require. In 2019, the company celebrated its 100th anniversary. In its fourth year of operation, Cummins expanded its business in Europe and sold its fully functional diesel engines to the Royal Navy of the United Kingdom. In 1925, the company began production of diesel engines for bus and truck traffic, and in 1952, Cummins developed and produced its first turbocharger system. In recent years, Cummins Inc has also increased its efforts towards sustainability and renewable energy, now offering products and services to support a wide range of applications including wind energy systems, solar systems, biofuels, and hybrid technologies. Overall, Cummins Inc is a leading provider of innovative and high-quality engines, parts, and accessories, offering customers a comprehensive solution that encompasses all aspects of their business. The company has proven throughout its nearly century-long history that it is continually able to meet the ever-changing demands of its customers and contribute to shaping the world and the economy. Cummins is one of the most popular companies on Eulerpool.

ROCE Details

Unraveling Cummins's Return on Capital Employed (ROCE)

Cummins's Return on Capital Employed (ROCE) is a financial metric that measures the company's profitability and efficiency with respect to the capital employed. It is calculated by dividing earnings before interest and tax (EBIT) by the employed capital. A higher ROCE indicates that the company is effectively utilizing its capital to generate profits.

Year-to-Year Comparison

Analyzing Cummins's ROCE annually provides valuable insights into its efficiency in using its capital to generate profits. An increasing ROCE indicates improved profitability and operational efficiency, whereas a decrease might signal potential issues in capital utilization or business operations.

Impact on Investments

Cummins's ROCE is a critical factor for investors and analysts for evaluating the company’s efficiency and profitability. A higher ROCE can make the company an attractive investment, as it often signifies that the firm is generating adequate profits from its employed capital.

Interpreting ROCE Fluctuations

Changes in Cummins’s ROCE are attributed to variations in EBIT or the capital employed. These fluctuations offer insights into the company’s operational efficiency, financial performance, and strategic financial management, assisting investors in making informed investment decisions.

Frequently Asked Questions about Cummins stock

Return on Capital Employed (ROCE) of Cummins is 29.71 % in 2025.

Return on Capital Employed (ROCE) of Cummins changed from 34.79 % to 29.71 %, representing a -14.61% change. The value is lower than the previous year.

On Eulerpool you can find the complete historical development of Return on Capital Employed (ROCE) Cummins since 2006 – with annual values, charts, and detailed analysis.

ROCE is a profitability measure and stands for Return on Capital Employed or the return on invested capital. The measure shows the ratio of operating profit to the interest-bearing capital employed. The higher the return on capital employed, the more profitable a company operates and the higher the important free cash flow. The free cash flow refers to the portion of profits that is not needed for expanding the company at the end of a period, but is available to shareholders.

A 'good' varies by industry and company stage. On Eulerpool, you can compare Return on Capital Employed (ROCE)'s Cummins with sector peers and the industry average to assess whether it is attractive.

To evaluate Return on Capital Employed (ROCE)'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for Return on Capital Employed (ROCE).

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