Cummins Inc (CMI)
Debt-to-assets 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,375,000 | 6,939,000 | 7,280,000 | 7,386,000 | 7,400,000 | 7,635,000 | 4,109,000 | 4,060,000 | 4,461,000 | 4,285,000 | 4,304,000 | 4,338,000 | 4,665,000 | 4,532,000 | 4,241,000 | 3,661,000 | 2,706,000 | 3,031,000 | 2,535,000 | 2,688,000 |
| Total assets | US$ in thousands | 32,005,000 | 32,097,000 | 31,735,000 | 31,433,000 | 30,299,000 | 29,769,000 | 24,477,000 | 24,122,000 | 23,710,000 | 23,063,000 | 22,608,000 | 22,962,000 | 22,624,000 | 21,568,000 | 20,314,000 | 20,076,000 | 19,737,000 | 20,346,000 | 20,254,000 | 19,846,000 |
| Debt-to-assets ratio | 0.20 | 0.22 | 0.23 | 0.23 | 0.24 | 0.26 | 0.17 | 0.17 | 0.19 | 0.19 | 0.19 | 0.19 | 0.21 | 0.21 | 0.21 | 0.18 | 0.14 | 0.15 | 0.13 | 0.14 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,375,000K ÷ $32,005,000K
= 0.20
The debt-to-assets ratio of Cummins Inc. has been relatively consistent over the past eight quarters, ranging from 0.17 to 0.27. A decreasing trend is observed from Q4 2022 to Q2 2023, with the ratio declining from 0.26 to 0.24. However, there was a slight increase in Q3 and Q4 2023, where the ratio rose to 0.23 and 0.21, respectively.
Overall, Cummins Inc. has maintained a moderate level of debt in relation to its assets, indicating that a significant portion of the company's assets are financed through debt. The company's ability to manage its debt level effectively is crucial to its financial stability and long-term sustainability. The decreasing trend in the debt-to-assets ratio from Q4 2022 to Q2 2023 may suggest efforts to reduce reliance on debt financing or improved asset management. Further monitoring of this ratio will be important to evaluate Cummins Inc.'s financial leverage and risk profile.
Peer comparison
Dec 31, 2023