Cummins Inc (CMI)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 31,540,000 | 32,052,000 | 31,320,000 | 31,827,000 | 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 |
| 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 |
| Financial leverage ratio | 3.07 | 3.11 | 3.28 | 3.51 | 3.62 | 3.01 | 3.07 | 3.27 | 3.38 | 3.55 | 2.80 | 2.86 | 2.91 | 2.85 | 2.87 | 2.83 | 2.81 | 2.80 | 2.82 | 2.84 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $31,540,000K ÷ $10,271,000K
= 3.07
Cummins Inc's financial leverage ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 2.84 in March 2020, decreased slightly to 2.80 by September 2020, and then rose to 2.91 by December 2021. It experienced a dip to 2.80 in June 2022, followed by a significant increase to 3.55 by September 2022. The ratio gradually declined to 3.07 by December 2024.
Overall, the trend indicates that the financial leverage of Cummins Inc has been volatile, with periods of both increase and decrease in leverage. It is important for investors and stakeholders to closely monitor these changes to assess the company's risk profile and debt management strategies.
Peer comparison
Dec 31, 2024