Cummins Inc (CMI)
Receivables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 23,571,000 | 24,119,000 | 24,294,000 | 24,205,000 |
| Receivables | US$ in thousands | 81,000 | — | — | 469,000 | 459,000 | 349,000 | 287,000 | 399,000 | 526,000 | — | — | — | 3,992,000 | 337,000 | 372,000 | 271,000 | 3,861,000 | 3,934,000 | 4,179,000 | 4,025,000 |
| Receivables turnover | 420.56 | — | — | 64.27 | 61.16 | 74.94 | 86.37 | 60.94 | 45.67 | — | — | — | 4.96 | 58.04 | 54.33 | 83.31 | 6.10 | 6.13 | 5.81 | 6.01 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $34,065,000K ÷ $81,000K
= 420.56
Cummins Inc. has shown consistent receivables turnover ratios over the past eight quarters. The receivables turnover ratio measures the company's efficiency in collecting outstanding receivables from customers during a specific period.
Cummins Inc.'s receivables turnover ranged from 5.17 to 6.10 over the analyzed period. The company's accounts receivable turnover rate indicates that, on average, Cummins converted its outstanding receivables into cash approximately 5.4 times per year during the most recent quarter.
Consistently high receivables turnover ratios may suggest that Cummins Inc. has effective credit policies, strong collection procedures, and well-managed accounts receivable. These factors indicate that the company is efficiently managing its credit sales and collecting payments promptly, promoting healthy cash flows.
Overall, the steady performance of Cummins Inc. in terms of receivables turnover indicates a well-managed credit and collections process, leading to efficient cash flow management.
Peer comparison
Dec 31, 2023