Cummins Inc (CMI)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 34,102,000 | 34,198,000 | 34,173,000 | 34,015,000 | 34,065,000 | 33,292,000 | 32,194,000 | 30,142,000 | 28,074,000 | 26,154,000 | 24,789,000 | 24,314,000 | 24,021,000 | 24,001,000 | 23,151,000 | 20,892,000 | 19,811,000 | 19,559,000 | 20,209,000 | 22,578,000 |
| Receivables | US$ in thousands | 121,000 | — | — | — | 81,000 | — | — | 469,000 | 459,000 | 349,000 | 287,000 | 399,000 | 526,000 | — | — | — | 3,992,000 | 337,000 | 372,000 | 271,000 |
| Receivables turnover | 281.83 | — | — | — | 420.56 | — | — | 64.27 | 61.16 | 74.94 | 86.37 | 60.94 | 45.67 | — | — | — | 4.96 | 58.04 | 54.33 | 83.31 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $34,102,000K ÷ $121,000K
= 281.83
The receivables turnover ratio for Cummins Inc reflects how efficiently the company is collecting payments from its customers. Looking at the data provided, we observe fluctuations in the receivables turnover ratio over the years.
In 2020, there was a notable decrease in the ratio from March to December, indicating a potential deterioration in the company's ability to collect payments from customers promptly. However, the ratio improved in 2021, suggesting better management of accounts receivables.
During the following years, there were variations in the receivables turnover ratio, with some periods showing high turnover and others with incomplete data. Notably, the ratio spiked significantly in December 2023 and December 2024, indicating a substantial increase in payment collection efficiency during those periods.
Overall, the analysis of Cummins Inc's receivables turnover ratio indicates fluctuations but demonstrates some improvement in managing accounts receivables in certain periods, with a notable increase in efficiency in the later years. However, it is essential for the company to maintain consistency in collection practices to ensure healthy cash flow and financial stability.
Peer comparison
Dec 31, 2024