Cummins Inc (CMI)
Debt-to-equity ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,651,000 | 7,426,000 | 7,070,000 | 6,491,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 10,271,000 | 10,315,000 | 9,551,000 | 9,067,000 | 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 |
| Debt-to-equity ratio | 0.65 | 0.72 | 0.74 | 0.72 | 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 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,651,000K ÷ $10,271,000K
= 0.65
Cummins Inc's debt-to-equity ratio has shown fluctuations over the years, ranging from 0.47 to 0.91. Historically, the company has maintained a relatively conservative leverage position, with the ratio staying below 1 for the most part. The ratio hit its lowest point at 0.47 on June 30, 2022, indicating a stronger equity position relative to debt at that time. However, there was a significant increase in the ratio to 0.91 on September 30, 2022, which suggests a higher level of debt compared to equity.
Overall, the trend in the debt-to-equity ratio for Cummins Inc seems to indicate some variability in the company's capital structure and financial risk management. It is important to monitor this ratio over time to assess the company's ability to meet its debt obligations and manage its financial leverage effectively.
Peer comparison
Dec 31, 2024