Cummins Inc. (NYSE:CMI)- Outshines Stocks with Rosy Profitability Scores: Deere & Company (NYSE:DE)

Cummins Inc. (NYSE:CMI) also making a luring appeal, share price swings at $138.86 with percentage change of -2.64% in most recent trading session. For the twelfth straight year, Cummins Inc. (CMI) has been awarded a perfect score in the 2017 Corporate Equality Index (CEI), a national benchmarking survey and report on corporate policies and practices related to LGBT workplace equality, administered by the Human Rights Campaign (HRC) Foundation.

Chairman and CEO Tom Linebarger stated that at Cummins, they have a long legacy of embracing the opportunities created by a diverse organization. “Diversity and inclusion throughout our company allows us to attract and retain the best talent and fuels a more innovative work environment allowing Cummins to be a strong and successful company.”

Profitability Valuation

The profit margin can answer significantly to find consistent trends in a firm’s earnings, the Co has positive 6.60% profit margin that indicates every dollar of sales a firm actually keeps in earnings, and the larger number indicates improving and vise worse. Gross profit margin, operating profit margin are its sub parts that firm has 25.60% and 9.30% respectively. Moving toward returns ratio, CMI has returns on investment of 16.60% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 7.80% hat gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 16.70%, which is measuring a corporation’s profitability by revealing how much profit generates by CMI with the shareholders’ money.

Moving toward ratio analysis, it has current ratio of 1.80 and quick ratio was calculated as 1.20. The debt to equity ratio appeared as 0.28 for seeing its liquidity position.

Moving on tracing line, Deere & Company (NYSE:DE) need to consider for profitability analysis, in latest session share price swings at $100.55 with percentage change of -0.77%.

The returns on assets was 2.60% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 22.00%, which is measuring profitability by disclosing how much profit generates by DE with the shareholders’ money.

The firm attains analyst recommendation of 2.60 on scale of 1-5 with week’s performance of -1.16%. In addition, the firm has debt to equity ratio of 5.47, sometimes its remain same with long term debt to equity ratio.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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