Cummins Inc (CMI)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.50 | 6.06 | 5.02 | 6.07 | 5.29 | |
| Number of days of payables | days | 56.19 | 60.23 | 72.68 | 60.17 | 69.00 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.50
= 56.19
Over the past five years, Cummins Inc has shown fluctuations in its number of days of payables. As of December 31, 2020, the company took on average 69.00 days to pay its accounts payable. This figure decreased to 60.17 days by December 31, 2021, suggesting an improvement in managing its payables. However, there was a slight increase to 72.68 days by December 31, 2022, which may indicate a potential delay in payment.
By December 31, 2023, the number of days of payables dropped to 60.23 days, indicating a return to a lower level of payment efficiency. Most recently, as of December 31, 2024, Cummins Inc reduced its days of payables further to 56.19 days, potentially indicating a more aggressive approach towards managing its accounts payable.
Overall, the trend in Cummins Inc's number of days of payables demonstrates some variability, with efforts apparent in managing payables more effectively observed in recent years. It is worth monitoring future financial statements to assess if the company can sustain and potentially improve upon its current level of payables management.
Peer comparison
Dec 31, 2024