Cummins (WBO:CMI) Days Inventory

: 81.68 (As of Dec. 2023)

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Days Inventory is also known as Days Sales of Inventory (DSI). Cummins's Average Total Inventories for the three months ended in Dec. 2023 was €5,370 Mil. Cummins's Cost of Goods Sold for the three months ended in Dec. 2023 was €5,999 Mil. Hence, Cummins's Days Inventory for the three months ended in Dec. 2023 was 81.68.

The historical rank and industry rank for Cummins's Days Inventory or its related term are showing as below:

WBO:CMI' s Days Inventory Range Over the Past 10 Years
Min: 66.68 Med: 75.21 Max: 85.1
Current: 82.26

During the past 13 years, Cummins's highest Days Inventory was 85.10. The lowest was 66.68. And the median was 75.21.

WBO:CMI's Days Inventory is ranked better than
71.89% of 2906 companies
in the Industrial Products industry
Industry Median: 120.67 vs WBO:CMI: 82.26

Cummins's Days Inventory declined from Dec. 2022 (88.43) to Dec. 2023 (81.68).

Inventory Turnover measures how fast the company turns over its inventory within a year. Cummins's Inventory Turnover for the three months ended in Dec. 2023 was 1.12.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Cummins's Inventory-to-Revenue for the three months ended in Dec. 2023 was 0.69.

Cummins Days Inventory Historical Data

The historical data trend for Cummins's Days Inventory 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.

* Premium members only.

Cummins Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Days Inventory

74.25

88.60

75.05

82.78

80.91

Cummins Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Days Inventory																88.43	81.97	84.18	84.95	81.68

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Cummins's Days Inventory, along with its competitors' market caps and Days Inventory 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 Days Inventory Distribution

For the Industrial Products industry and Industrials sector, Cummins's Days Inventory distribution charts can be found below:

* The bar in red indicates where Cummins's Days Inventory falls into.

Cummins Days Inventory Calculation

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Cummins's Days Inventory for the fiscal year that ended in Dec. 2023 is calculated as

	Days Inventory (A: Dec. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )	/	Cost of Goods Sold (A: Dec. 2023 )	*	Days in Period
=	( (5289.232	+	5205.809)	/	2 )	/	23673.272	*	365
=	5247.5205					/	23673.272	*	365
=	80.91

Cummins's Days Inventory for the quarter that ended in Dec. 2023 is calculated as:

	Days Inventory (Q: Dec. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
=	( (5533.922	+	5205.809)	/	2 )	/	5999.014	*	365 / 4
=	5369.8655					/	5999.014	*	365 / 4
=	81.68

Cummins (WBO:CMI) Days Inventory Explanation

Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:

1. Inventory Turnover measures how fast the company turns over its inventory within a year.

Cummins's Inventory Turnover for the three months ended in Dec. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	5999.014	/	5369.8655
	=	1.12

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Cummins's Inventory to Revenue for the three months ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	5369.8655	/	7833.931
	=	0.69

Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.

Cummins Days Inventory Related Terms

Thank you for viewing the detailed overview of Cummins's Days Inventory provided by GuruFocus.com. Please click on the following links to see related term pages.

Cummins (WBO:CMI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Cummins Inc (WBO:CMI) » Definitions » Days Inventory

Comparable Companies

Traded in Other Exchanges

CMI:USA 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.