Cummins Inc (CMI)
Working capital 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 |
| Total current assets | US$ in thousands | 15,198,000 | 15,912,000 | 15,410,000 | 15,368,000 | 14,451,000 | 14,398,000 | 12,762,000 | 12,596,000 | 12,309,000 | 12,320,000 | 11,931,000 | 12,122,000 | 11,897,000 | 11,062,000 | 9,834,000 | 9,790,000 | 9,387,000 | 10,228,000 | 10,450,000 | 10,091,000 |
| Total current liabilities | US$ in thousands | 12,903,000 | 11,126,000 | 11,045,000 | 11,923,000 | 11,421,000 | 10,530,000 | 7,671,000 | 7,512,000 | 7,084,000 | 6,861,000 | 6,604,000 | 6,660,000 | 6,335,000 | 5,709,000 | 6,916,000 | 6,982,000 | 6,260,000 | 6,725,000 | 6,289,000 | 6,427,000 |
| Working capital turnover | 14.84 | 6.96 | 7.38 | 8.75 | 9.27 | 6.76 | 4.87 | 4.78 | 4.60 | 4.40 | 4.35 | 3.82 | 3.56 | 3.65 | 6.93 | 8.04 | 7.54 | 6.89 | 5.84 | 6.61 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $34,065,000K ÷ ($15,198,000K – $12,903,000K)
= 14.84
The working capital turnover ratio for Cummins Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the company achieved a high working capital turnover of 14.84, indicating that it generated $14.84 in revenue for every dollar of working capital invested. This marks a significant improvement compared to the previous quarter, where the ratio was 6.96.
Overall, the trend in working capital turnover for Cummins Inc. has been positive, with fluctuations reflecting changes in the efficiency of the company in utilizing its working capital to generate sales. The company has shown the ability to effectively manage its working capital over the quarters, with Q4 2023 standing out as a particularly strong performance. This suggests that Cummins Inc. has been efficient in utilizing its working capital to drive revenue growth, which is a positive indicator of its operational efficiency and financial health.
Peer comparison
Dec 31, 2023