Cummins (Cummins) Cash-to-Debt

: 0.38 (As of Dec. 2023)

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Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Cummins's cash to debt ratio for the quarter that ended in Dec. 2023 was 0.38.

If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, Cummins couldn't pay off its debt using the cash in hand for the quarter that ended in Dec. 2023.

The historical rank and industry rank for Cummins's Cash-to-Debt or its related term are showing as below:

CMI' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.31 Med: 0.72 Max: 1.42
Current: 0.38

During the past 13 years, Cummins's highest Cash to Debt Ratio was 1.42. The lowest was 0.31. And the median was 0.72.

CMI's Cash-to-Debt is ranked worse than
73.38% of 2998 companies
in the Industrial Products industry
Industry Median: 1.205 vs CMI: 0.38

Cummins Cash-to-Debt Historical Data

The historical data trend for Cummins's Cash-to-Debt can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Cummins Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash-to-Debt

0.51

0.84

0.69

0.31

0.38

Cummins Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Cash-to-Debt																0.31	0.30	0.28	0.36	0.38

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Cummins's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Cummins Cash-to-Debt Distribution

For the Industrial Products industry and Industrials sector, Cummins's Cash-to-Debt distribution charts can be found below:

* The bar in red indicates where Cummins's Cash-to-Debt falls into.

Cummins Cash-to-Debt Calculation

This is the ratio of a company's Cash, Cash Equivalents, Marketable Securities to its debt. The debt includes the Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation. This ratio measures the financial strength of a company. This ratio is updated quarterly.

Cummins's Cash to Debt Ratio for the fiscal year that ended in Dec. 2023 is calculated as:

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	2741	/	(2032	+	5176)
	=	0.38

Cummins's Cash to Debt Ratio for the quarter that ended in Dec. 2023 is calculated as:

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	2741	/	(2032	+	5176)
	=	0.38

Cummins (NYSE:CMI) Cash-to-Debt Explanation

If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.

Cummins Cash-to-Debt Related Terms

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Cummins (Cummins) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Cummins Inc (NYSE:CMI) » Definitions » Cash-to-Debt

Comparable Companies

Traded in Other Exchanges

CUM:Germany CUM:Germany CUM:Germany C1MI34:Brazil

Address

500 Jackson Street, Box 3005, Columbus, IN, USA, 47202-3005

Website

https://www.cummins.com

Cummins is the top manufacturer of diesel engines used in commercial trucks, off-highway equipment, and railroad locomotives, in addition to standby and prime power generators. The company also sells powertrain components, which include transmissions, turbochargers, aftertreatment systems, and fuel systems. Cummins is in the unique position of competing with its primary customers, heavy-duty truck manufacturers, who make and aggressively market their own engines. Despite robust competition across all its segments and increasing government regulation of carbon emissions, Cummins has maintained its leadership position in the industry.

Executives

Jennifer Rumsey	officer: Chief Technical Officer	500 JACKSON STREET, COLUMBUS IN 47201
Daniel William Fisher	director	2526 SPRUCE MEADOWS DRIVE, BROOMFIELD CO 80023
Jonathan David Wood	officer: Vice President & CTO	500 JACKSON STREET, COLUMBUS IN 47201
Sharon R Barner	officer: VP - General Counsel	500 JACKSON STREET, COLUMBUS IN 47201
Georgia R Nelson	director	C/O TOWER AUTOMOTIVE INC, 27175 HAGGERTY ROAD, NOVI MI 48377-3626
Di Leo Allen Bruno V	director	INTERNATIONAL BUSINESS MACHINES CORP., C/O SEC'Y'S OFFICE, ONE NEW ORCHARD ROAD, ARMONK NY 10504
Franklin R Changdiaz	director	500 JACKSON ST., M/C 60701, COLUMBUS IN 47201
Tony Satterthwaite	officer: President - Distribution	1400 73RD AVENUE NE, MINNEAPOLIS MN 55432
Norman Thomas Linebarger	officer: President-Power Gen.
Tracy A Embree	officer: VP & Pres. - Components Group	500 JACKSON STREET, COLUMBUS IN 47201
Mahesh Narang	officer: VP & President - Components	500 JACKSON STREET, COLUMBUS IN 47201
Mark Andrew Smith	officer: VP - Operations Finance	500 JACKSON STREET, COLUMBUS IN 47201
Marvin Boakye	officer: VP - Chief Human Resources Off	PO BOX 99900, LOUISVILLE KY 40269
Srikanth Padmanabhan	officer: President - Engine Busines	500 JACKSON STREET, COLUMBUS IN 47201
Jennifer Mary Bush	officer: VP & Pres. - Power Systems	CENTURY ALUMINUM COMPANY, 1 S. WACKER DRIVE, SUITE 1000, CHICAGO IL 60606