Cummins Inc (CMI)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,375,000 | 7,400,000 | 4,461,000 | 4,665,000 | 2,706,000 |
| Total stockholders’ equity | US$ in thousands | 8,850,000 | 8,975,000 | 8,146,000 | 8,062,000 | 7,507,000 |
| Debt-to-equity ratio | 0.72 | 0.82 | 0.55 | 0.58 | 0.36 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,375,000K ÷ $8,850,000K
= 0.72
The debt-to-equity ratio of Cummins Inc. has shown fluctuations over the past five years, ranging from 0.32 in 2019 to 0.88 in 2022. The ratio decreased significantly from 2019 to 2021, indicating a reduction in debt relative to equity during this period. However, there was an increase in the ratio in 2022, suggesting a higher level of debt compared to equity. By the end of 2023, the ratio stood at 0.76, indicating a moderate level of debt relative to equity. Overall, the trend in the debt-to-equity ratio for Cummins Inc. demonstrates variability in the capital structure over the years, reflecting changes in the company's financing decisions and leverage levels.
Peer comparison
Dec 31, 2023