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: 0.11 Med: 0.41 Max: 1.51
Current: 0.56
During the past 13 years, the highest Debt-to-Equity Ratio of Cummins was 1.51. The lowest was 0.11. And the median was 0.41.
CMI's Debt-to-Equity is ranked worse than 69.54% of 2367
companies
in the Industrial Products industry
Industry Median: 0.30
vs CMI: 0.56
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 Annual Data
Trend
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Debt-to-Equity
0.28
0.34
0.38
0.57
0.54
Cummins Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Debt-to-Equity
0.56
0.54
0.54
0.54
0.56
Competitive Comparison
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 Debt-to-Equity Distribution
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.
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. 2021 is calculated as
* 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.
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 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 filtration products, 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 diesel emissions, Cummins has maintained its leadership position in the industry.
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