Cummins Inc (CMI)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.06 | 5.02 | 6.07 | 5.29 | 6.94 | |
| Number of days of payables | days | 60.23 | 72.68 | 60.17 | 69.00 | 52.58 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.06
= 60.23
The number of days of payables for Cummins Inc. has fluctuated over the past five years. In 2023, Cummins took approximately 60.23 days to pay off its trade payables, a decrease from 72.68 days in 2022. This indicates that the company improved its efficiency in managing its payables in 2023 compared to the previous year. However, the number of days of payables in 2023 was slightly higher than 60.17 days in 2021.
In 2020, Cummins took about 69.00 days to pay off its payables, indicating a slight decrease in efficiency compared to 2019 when it took 52.58 days. It is important for the company to monitor and manage its payables effectively to ensure optimal cash flow management and relationships with suppliers. Overall, Cummins' performance in managing its payables has shown some variability in recent years.
Peer comparison
Dec 31, 2023