Revenue Analysis
CNHI shows a notable increment in Total and Operating Revenue over the last quarters. As of the latest data on 2024-03-31, Total Revenue stands at $4.818 billion, a decline from the previous quarter’s $6.792 billion in 2023-12-31. However, comparing with 2023-09-30 and further back, there’s an evident upward trend from $5.986 billion. The Gross Profit also reflects a similar pattern, peaking at $2.087 billion in 2023-12-31 before settling at $1.623 billion in 2024-03-31, which still shows growth compared to earlier quarters such as $1.927 billion in 2023-09-30.
Cost Management
Cost of Revenue has increased from $4.059 billion as of 2023-09-30 to precarious heights in Q4 of 2023 at $4.705 billion before a drop in Q1 of 2024 to $3.195 billion. Operating Expenses show a similar trend, peaking significantly at $753 million in 2023-12-31. Total Expenses echo this trend, peaking at $5.458 billion in 2023-12-31, reflecting heightened activity or costs during that period.
Profitability Analysis
EBITDA peaked in 2023-12-31 at $1.129 billion but decreased to $944 million by 2024-03-31. The Operating Income similarly rose to a pinnacle of $1.334 billion in 2023-12-31 before decreasing to $984 million by 2024-03-31. Pretax Income shows a significant drop from $577 million in 2023-12-31 to $402 million in 2024-03-31. Net Income from continuous operations dropped from $617 million in 2023-12-31 to $402 million in 2024-03-31, highlighting challenges in maintaining profit margins.
Cash Flow Indicators
Reconciled Depreciation remains fairly consistent, averaging around $145 million through recent quarters. This consistency indicates stable capital expenditure trends. Interest Expense has been a significant outgoing cash flow, slightly decreasing from $404 million in 2023-12-31 to $394 million in 2024-03-31.
Taxation
Comparing Tax Provisions, we observe a fluctuation where it reduced from a high of $192 million in 2023-06-30. The Tax Rate oscillated, reaching a low of 10% by 2023-12-31 from earlier higher rates, which suggests variable tax management strategies. The Tax Effects of Unusual Items, however, are minor but noteworthy for understanding fiscal irregularities.
Shareholder Metrics
The Diluted EPS has shown growth from 0.42 in 2023-09-30 to 0.46 in 2023-12-31, though it decreased to 0.31 by 2024-03-31. A similar trend is seen in Basic EPS. Net Income Available to Common Stockholders peaked at $616 million in 2023-12-31 before reducing to $401 million by 2024-03-31.
Conclusion
CNHI has demonstrated a resilient upward trajectory in terms of revenue and gross profits across the quarters, yet faces challenges in managing costs, which affects the overall profitability. Strategic cost management and efficiency improvements could be key areas to focus on to bolster profitability in subsequent quarters.