Cummins Inc (CMI)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.31 | 1.32 | 1.34 | 1.34 | 1.18 | 1.43 | 1.40 | 1.29 | 1.27 | 1.37 | 1.66 | 1.68 | 1.74 | 1.80 | 1.81 | 1.82 | 1.88 | 1.94 | 1.42 | 1.40 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $14,752,000K ÷ $11,234,000K
= 1.31
Cummins Inc's current ratio has shown fluctuations over the period under consideration. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, ranged from a high of 1.94 on September 30, 2020, to a low of 1.18 on December 31, 2023.
Overall, the current ratio appears to have been relatively stable, staying mostly above 1, which indicates that Cummins Inc generally had more current assets than current liabilities to meet its short-term obligations. However, the declining trend in the current ratio from the peak in September 2020 to December 2024 may suggest potential challenges in managing liquidity or converting current assets into cash.
It is important for investors and stakeholders to continue monitoring Cummins Inc's current ratio to assess the company's short-term liquidity position and its ability to meet its financial obligations as they come due.
Peer comparison
Dec 31, 2024