Cummins Inc (CMI)
Quick ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 1,129,000 | 1,560,000 | 1,397,000 | 1,328,000 |
| Short-term investments | US$ in thousands | 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 | 341,000 | 303,000 | 335,000 | 246,000 |
| Receivables | US$ in thousands | 81,000 | — | — | 469,000 | 459,000 | 349,000 | 287,000 | 399,000 | 526,000 | — | — | — | 3,992,000 | 337,000 | 372,000 | 271,000 | 3,861,000 | 3,934,000 | 4,179,000 | 4,025,000 |
| 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 |
| Quick ratio | 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 | 0.85 | 0.86 | 0.94 | 0.87 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,179,000K
+ $562,000K
+ $81,000K)
÷ $12,903,000K
= 0.22
The quick ratio is a measure of a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that a company may have difficulty meeting its short-term liabilities without relying on its inventory.
Based on the data provided, we can observe fluctuations in Cummins Inc.'s quick ratio over the past eight quarters. The quick ratio has ranged from a low of 0.74 in Q4 2023 to a high of 1.07 in Q1 2022.
A quick ratio below 1 in several quarters suggests that Cummins Inc. may have faced challenges in meeting its short-term obligations without relying on inventory. A declining trend in the quick ratio over time could raise concerns about the company's liquidity position. It is essential for investors and stakeholders to monitor the trend of the quick ratio to assess Cummins Inc.'s ability to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023