Cummins Inc (CMI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 34,065,000 | 28,074,000 | 24,021,000 | 19,811,000 | 23,571,000 |
| Receivables | US$ in thousands | 81,000 | 459,000 | 526,000 | 3,992,000 | 3,861,000 |
| Receivables turnover | 420.56 | 61.16 | 45.67 | 4.96 | 6.10 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $34,065,000K ÷ $81,000K
= 420.56
The receivables turnover ratio for Cummins Inc. has been fluctuating over the past five years, with values ranging from 5.19 to 6.42. The trend indicates that, on average, Cummins converted its accounts receivable into cash approximately 5.83 times a year over this period. A higher turnover ratio suggests that the company is efficient in collecting payments from customers, while a lower ratio may indicate potential issues with collecting outstanding receivables. Overall, Cummins Inc. has demonstrated relatively stable receivables turnover performance, with occasional fluctuations, which could be influenced by factors such as sales volume, credit policies, and economic conditions.
Peer comparison
Dec 31, 2023