Cummins Inc (CMI)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,671,000 | 1,733,000 | 1,590,000 | 2,541,000 | 2,179,000 | 2,387,000 | 1,802,000 | 1,980,000 | 2,020,000 | 2,499,000 | 2,462,000 | 2,276,000 | 2,592,000 | 2,588,000 | 2,481,000 | 2,958,000 | 3,401,000 | 2,967,000 | 1,751,000 | 1,691,000 |
| Short-term investments | US$ in thousands | 593,000 | 518,000 | 593,000 | 510,000 | 562,000 | 677,000 | 512,000 | 459,000 | 553,000 | 466,000 | 536,000 | 527,000 | 595,000 | 430,000 | 438,000 | 397,000 | 461,000 | 345,000 | 353,000 | 339,000 |
| Receivables | US$ in thousands | 121,000 | — | — | — | 81,000 | — | — | 469,000 | 459,000 | 349,000 | 287,000 | 399,000 | 526,000 | — | — | — | 3,992,000 | 337,000 | 372,000 | 271,000 |
| 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 |
| Quick ratio | 0.21 | 0.19 | 0.20 | 0.26 | 0.22 | 0.28 | 0.21 | 0.24 | 0.27 | 0.31 | 0.43 | 0.43 | 0.52 | 0.44 | 0.44 | 0.50 | 1.24 | 0.64 | 0.36 | 0.33 |
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
Cummins Inc's quick ratio has shown fluctuating trends over the past several periods. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
From March 2020 to December 2021, the quick ratio demonstrated significant improvement, increasing from a low of 0.33 to a peak of 1.24, indicating a strengthening ability to cover its current liabilities with liquid assets. However, from March 2022 onwards, the quick ratio started to decline gradually, dropping to 0.21 by June 2024, suggesting a potential decrease in the company's short-term liquidity position.
Overall, the quick ratio analysis reveals a period of improvement followed by a period of decline in Cummins Inc's ability to meet its short-term obligations with its current liquid assets. Further monitoring and analysis of the company's liquidity management practices may be warranted to assess and address the decreasing trend in the quick ratio.
Peer comparison
Dec 31, 2024