Flagship explainer

What drives CUMMINS INC’s return on equity?

ROE is five filed business factors multiplied together.

DuPont return on equity factor treeReturn on equity branches into tax burden, interest burden, operating margin, asset turnover, and the equity multiplier.Return on equity26%Tax burden75%net income ÷ pretax incomeInterest burden98%pretax ÷ operating incomeOperating margin12%operating income ÷ revenueAsset turnover1.03×revenue ÷ average assetsEquity multiplier2.90×average assets ÷ average equityAs of 2025-12-31 · 2 SEC filing sourcesBuy Like Buffett · buylikebuffett.com
DuPont source inputs
InputValueFiscal yearSource
$3.0BFY2025
Income before tax$4.0BFY2025
Operating income$4.0BFY2025
$33.7BFY2025
Ending assets$34.0BFY2025
Beginning assets$31.5BFY2024
$12.3BFY2025
$10.3BFY2024
Source: · event Dec 31, 2025 · retrieved Jul 26, 2026 · annual-row source set
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