CMI (Cummins) Debt-to-Equity : 0.74 (As of Mar. 2025)

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What is Cummins Debt-to-Equity?

Cummins's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $2,825 Mil. Cummins's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $5,210 Mil. Cummins's Total Stockholders Equity for the quarter that ended in Mar. 2025 was $10,924 Mil. Cummins's debt to equity for the quarter that ended in Mar. 2025 was 0.74.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

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

CMI' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.21 Med: 0.54 Max: 1.03
Current: 0.74

During the past 13 years, the highest Debt-to-Equity Ratio of Cummins was 1.03. The lowest was 0.21. And the median was 0.54.

CMI's Debt-to-Equity is ranked worse than
78.64% of 2631 companies
in the Industrial Products industry
Industry Median: 0.28 vs CMI: 0.74

Cummins Debt-to-Equity Historical Data

The historical data trend for Cummins's Debt-to-Equity 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 Debt-to-Equity Chart

Cummins Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Debt-to-Equity

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0.57

0.93

0.81

0.74

Cummins Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
Debt-to-Equity	Get a 7-Day Free Trial															0.81	0.83	0.79	0.74	0.74

Competitive Comparison of Cummins's Debt-to-Equity

For the Specialty Industrial Machinery subindustry, Cummins's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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's Debt-to-Equity Distribution in the Industrial Products Industry

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

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

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Cummins Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Cummins's Debt to Equity Ratio for the fiscal year that ended in Dec. 2024 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(2405	+	5193)	/	10271
	=	0.74

Cummins's Debt to Equity Ratio for the quarter that ended in Mar. 2025 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(2825	+	5210)	/	10924
	=	0.74

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

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Cummins Debt-to-Equity Related Terms

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

Cummins Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

0I58:UK CUM:Germany CUM:Germany C1MI34:Brazil CMI:Austria

Address

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

Website

https://www.cummins.com

Cummins is a leading manufacturer of diesel and other engines used in heavy- and medium-duty commercial trucks, off-highway equipment, and locomotives, in addition to prime power and standby generators. The company also sells powertrain components, which include filtration products, transmissions, turbochargers, aftertreatment systems, and fuel systems. Sales are approximately 60% US and Canada and 40% rest of world. Much of Cummins' foreign sales (China, India, and so forth) are through joint ventures. The company operates 650 distributors and over 19,000 dealer locations across 190 countries. Cummins' business model is unique as it competes with many of its heavy-duty truck manufacturer customers, who also make their own engines.

Executives

Mark Andrew Smith	officer: VP - Operations Finance	500 JACKSON STREET, COLUMBUS IN 47201
Jennifer Rumsey	officer: Chief Technical Officer	500 JACKSON STREET, COLUMBUS IN 47201
Sharon R Barner	officer: VP - General Counsel	500 JACKSON STREET, COLUMBUS IN 47201
Di Leo Allen Bruno V	director	INTERNATIONAL BUSINESS MACHINES CORP., C/O SEC'Y'S OFFICE, ONE NEW ORCHARD ROAD, ARMONK NY 10504
Donald G Jackson	officer: VP and Treasurer	500 JACKSON STREET, COLUMBUS IN 47201
Tony Satterthwaite	officer: President - Distribution	1400 73RD AVENUE NE, MINNEAPOLIS MN 55432
Jeffrey T Wiltrout	officer: VP - Corporate Strategy	500 JACKSON STREET, COLUMBUS IN 47201
Marvin Boakye	officer: VP - Chief Human Resources Off	PO BOX 99900, LOUISVILLE KY 40269
Daniel William Fisher	director	2526 SPRUCE MEADOWS DRIVE, BROOMFIELD CO 80023
Sherry A Aaholm	officer: Chief Information Officer	500 JACKSON STREET, COLUMBUS IN 47201
Luther E Peters	officer: VP - Corporate Controller	500 JACKSON STREET, COLUMBUS IN 47201
Jonathan David Wood	officer: Vice President & CTO	500 JACKSON STREET, COLUMBUS IN 47201
Georgia R Nelson	director	C/O TOWER AUTOMOTIVE INC, 27175 HAGGERTY ROAD, NOVI MI 48377-3626
Franklin R Changdiaz	director	500 JACKSON ST., M/C 60701, COLUMBUS IN 47201
Norman Thomas Linebarger	officer: President-Power Gen.