Cummins Inc (CMI)
Working capital 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 |
| Total current assets | US$ in thousands | 14,752,000 | 15,316,000 | 14,962,000 | 15,620,000 | 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 |
| Total current liabilities | US$ in thousands | 11,234,000 | 11,603,000 | 11,144,000 | 11,686,000 | 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 |
| Working capital turnover | 9.69 | 9.21 | 8.95 | 8.65 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $34,102,000K ÷ ($14,752,000K – $11,234,000K)
= 9.69
The working capital turnover ratio for Cummins Inc has varied over the periods analyzed. The ratio ranged from 3.56 to 14.84 from December 31, 2020, to December 31, 2023. A higher working capital turnover ratio indicates that the company effectively utilizes its working capital to generate sales revenue.
It is important to note that the working capital turnover ratio is not constant and fluctuates due to changes in a company's operating cycle and management of its working capital components. Therefore, analyzing trends in the ratio over time can provide insights into the efficiency of Cummins Inc in managing its working capital to support its sales operations.
Overall, the working capital turnover ratio for Cummins Inc has shown variability but generally maintained at moderate to high levels, indicating a relatively efficient use of working capital to generate sales.
Peer comparison
Dec 31, 2024