Cummins Inc (CMI)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 34,102,000 | 34,065,000 | 28,074,000 | 24,021,000 | 19,811,000 |
| Receivables | US$ in thousands | 121,000 | 81,000 | 459,000 | 526,000 | 3,992,000 |
| Receivables turnover | 281.83 | 420.56 | 61.16 | 45.67 | 4.96 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $34,102,000K ÷ $121,000K
= 281.83
Cummins Inc's receivables turnover has shown a significant increase over the period from December 31, 2020, to December 31, 2024. The ratio has exhibited substantial growth, starting at 4.96 in 2020 and reaching 281.83 in 2024. This indicates that the company's efficiency in collecting cash from its customers has improved significantly. A higher receivables turnover ratio suggests that Cummins Inc is managing its accounts receivable more effectively, possibly through better credit policies or more timely collection efforts. This increase in receivables turnover is a positive sign for the company's financial health and indicates strong performance in managing its accounts receivable.
Peer comparison
Dec 31, 2024