Cummins Inc (CMI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,671,000 | 2,179,000 | 2,020,000 | 2,592,000 | 3,401,000 |
| Short-term investments | US$ in thousands | 593,000 | 562,000 | 553,000 | 595,000 | 461,000 |
| Receivables | US$ in thousands | 121,000 | 81,000 | 459,000 | 526,000 | 3,992,000 |
| Total current liabilities | US$ in thousands | 11,234,000 | 12,903,000 | 11,421,000 | 7,084,000 | 6,335,000 |
| Quick ratio | 0.21 | 0.22 | 0.27 | 0.52 | 1.24 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,671,000K
+ $593,000K
+ $121,000K)
÷ $11,234,000K
= 0.21
The quick ratio of Cummins Inc has shown a gradual decline over the years, from 1.24 in December 2020 to 0.21 by the end of December 2024. This indicates a decreasing ability of the company to meet its short-term obligations with its most liquid assets. A quick ratio below 1.0 generally raises concerns about the company's short-term liquidity and ability to cover immediate liabilities. Cummins Inc may need to address its liquidity position to ensure it can meet its short-term financial obligations effectively in the future.
Peer comparison
Dec 31, 2024