Cummins Inc (CMI)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 8,850,000 | 10,658,000 | 10,337,000 | 9,623,000 | 8,975,000 | 8,380,000 | 8,738,000 | 8,436,000 | 8,146,000 | 8,082,000 | 7,866,000 | 8,109,000 | 8,062,000 | 7,700,000 | 7,192,000 | 7,068,000 | 7,507,000 | 7,810,000 | 8,278,000 | 7,820,000 |
| Debt-to-equity ratio | 0.72 | 0.65 | 0.70 | 0.77 | 0.82 | 0.91 | 0.47 | 0.48 | 0.55 | 0.53 | 0.55 | 0.53 | 0.58 | 0.59 | 0.59 | 0.52 | 0.36 | 0.39 | 0.31 | 0.34 |
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 for Cummins Inc. has fluctuated over the past eight quarters. In Q4 2023, the ratio stood at 0.76, indicating that for every dollar of equity, the company had $0.76 in debt. This ratio decreased from the preceding quarter, suggesting a relative reduction in debt levels or an increase in equity.
Comparing to the same quarter in the previous year, there has been an improvement, as Q4 2022 had a higher debt-to-equity ratio of 0.88. This indicates a positive trend in managing debt levels relative to equity over the past year.
It is important to note the low points in Q2 and Q1 of 2022 where the debt-to-equity ratio reached 0.51 and 0.49, respectively. These low ratios suggest a stronger financial position during those periods, with a higher proportion of equity compared to debt.
Overall, while the debt-to-equity ratio fluctuates, the trend over the past year shows improvements in managing debt levels relative to equity. Continued monitoring of this ratio will be essential to assess the company's financial health and its ability to meet its obligations.
Peer comparison
Dec 31, 2023