Cummins Inc (CMI)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,651,000 | 6,375,000 | 7,400,000 | 4,461,000 | 4,665,000 |
| Total assets | US$ in thousands | 31,540,000 | 32,005,000 | 30,299,000 | 23,710,000 | 22,624,000 |
| Debt-to-assets ratio | 0.21 | 0.20 | 0.24 | 0.19 | 0.21 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,651,000K ÷ $31,540,000K
= 0.21
The debt-to-assets ratio of Cummins Inc has shown some fluctuations over the past five years. As of December 31, 2020, the ratio stood at 0.21, indicating that 21% of the company's assets were financed by debt. This ratio decreased to 0.19 by the end of 2021, suggesting a slight improvement in the company's debt management.
However, the ratio increased to 0.24 by December 31, 2022, signaling that 24% of Cummins Inc's assets were funded through debt, which might raise concerns about the company's leverage. The ratio then dropped to 0.20 by the end of 2023, indicating a better balance between debt and assets.
By December 31, 2024, the debt-to-assets ratio of Cummins Inc had slightly increased to 0.21. Overall, while there have been fluctuations in the ratio over the years, the company has generally maintained a reasonable level of debt relative to its assets, implying a relatively stable financial position.
Peer comparison
Dec 31, 2024