Market Cap : 30.95 B | Enterprise Value : 32.88 B | PE Ratio : 15.35 | PB Ratio : 3.54 |
---|
NYSE:CMI has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
NYSE:CMI has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -2.49 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Cummins's Beneish M-Score or its related term are showing as below:
During the past 13 years, the highest Beneish M-Score of Cummins was -1.75. The lowest was -3.09. And the median was -2.57.
The historical data trend for Cummins's Beneish M-Score 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.
For the Specialty Industrial Machinery subindustry, Cummins's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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.
For the Industrial Products industry and Industrials sector, Cummins's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Cummins's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Cummins for today is based on a combination of the following eight different indices:
M | = | -4.84 | + | 0.92 * DSRI | + | 0.528 * GMI | + | 0.404 * AQI | + | 0.892 * SGI | + | 0.115 * DEPI |
= | -4.84 | + | 0.92 * 0.9393 | + | 0.528 * 1.0144 | + | 0.404 * 1.0537 | + | 0.892 * 1.0708 | + | 0.115 * 1.0686 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 0.9969 | + | 4.679 * -0.011 | - | 0.327 * 1.0041 | |||||||
= | -2.49 |
* 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.
This Year (Jun22) TTM: | Last Year (Jun21) TTM: |
Total Receivables was $4,156 Mil. Revenue was 6586 + 6385 + 5850 + 5968 = $24,789 Mil. Gross Profit was 1726 + 1532 + 1317 + 1414 = $5,989 Mil. Total Current Assets was $12,762 Mil. Total Assets was $24,477 Mil. Property, Plant and Equipment(Net PPE) was $4,819 Mil. Depreciation, Depletion and Amortization(DDA) was $653 Mil. Selling, General, & Admin. Expense(SGA) was $2,437 Mil. Total Current Liabilities was $7,671 Mil. Long-Term Debt & Capital Lease Obligation was $3,805 Mil. Net Income was 702 + 418 + 394 + 534 = $2,048 Mil. Non Operating Income was 47 + -10 + 109 + 108 = $254 Mil. Cash Flow from Operations was 599 + 164 + 732 + 569 = $2,064 Mil. |
Total Receivables was $4,132 Mil. Revenue was 6111 + 6092 + 5830 + 5118 = $23,151 Mil. Gross Profit was 1478 + 1486 + 1361 + 1349 = $5,674 Mil. Total Current Assets was $11,931 Mil. Total Assets was $22,608 Mil. Property, Plant and Equipment(Net PPE) was $4,632 Mil. Depreciation, Depletion and Amortization(DDA) was $677 Mil. Selling, General, & Admin. Expense(SGA) was $2,283 Mil. Total Current Liabilities was $6,604 Mil. Long-Term Debt & Capital Lease Obligation was $3,952 Mil. |
1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Total Receivables in year t to year t-1.
A large increase in DSR could be indicative of revenue inflation.
DSRI | = | (Receivables_t / Revenue_t) | / | (Receivables_t-1 / Revenue_t-1) |
= | (4156 / 24789) | / | (4132 / 23151) | |
= | 0.16765501 | / | 0.17848041 | |
= | 0.9393 |
2. GMI = Gross Margin Index
Measured as the ratio of gross margin in year t-1 to gross margin in year t.
Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.
GMI | = | GrossMargin_t-1 | / | GrossMargin_t |
= | (GrossProfit_t-1 / Revenue_t-1) | / | (GrossProfit_t / Revenue_t) | |
= | (5674 / 23151) | / | (5989 / 24789) | |
= | 0.24508661 | / | 0.2415991 | |
= | 1.0144 |
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.
AQI | = | (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) | / | (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) |
= | (1 - (12762 + 4819) / 24477) | / | (1 - (11931 + 4632) / 22608) | |
= | 0.28173387 | / | 0.26738323 | |
= | 1.0537 |
4. SGI = Sales Growth Index
Ratio of Revenue in year t to sales in year t-1.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
SGI | = | Sales_t | / | Sales_t-1 |
= | Revenue_t | / | Revenue_t-1 | |
= | 24789 | / | 23151 | |
= | 1.0708 |
5. DEPI = Depreciation Index
Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI | = | (Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) | / | (Depreciation_t / (Depreciaton_t + PPE_t)) |
= | (677 / (677 + 4632)) | / | (653 / (653 + 4819)) | |
= | 0.12751931 | / | 0.1193348 | |
= | 1.0686 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.
SGA expenses index > 1 means that the company is becoming less efficient in generate sales.
SGAI | = | (SGA_t / Sales_t) | / | (SGA_t-1 /Sales_t-1) |
= | (2437 / 24789) | / | (2283 / 23151) | |
= | 0.09830973 | / | 0.09861345 | |
= | 0.9969 |
7. LVGI = Leverage Index
The ratio of total debt to Total Assets in year t relative to yeat t-1.
An LVGI > 1 indicates an increase in leverage
LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
= | ((3805 + 7671) / 24477) | / | ((3952 + 6604) / 22608) | |
= | 0.46884831 | / | 0.46691437 | |
= | 1.0041 |
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA | = | (IncomefromContinuingOperations_t | - | CashFlowsfromOperations_t) | / | TotalAssets_t |
= | (NetIncome_t - NonOperatingIncome_t | - | CashFlowsfromOperations_t) | / | TotalAssets_t | |
= | (2048 - 254 | - | 2064) | / | 24477 | |
= | -0.011 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Cummins has a M-score of -2.49 suggests that the company is unlikely to be a manipulator.
Thank you for viewing the detailed overview of Cummins's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Peters Luther E | officer: VP - Corporate Controller | 500 JACKSON STREET COLUMBUS IN 47201 |
Fetch Bonnie J | officer: VP - Supply Chain | 500 JACKSON STREET COLUMBUS IN 47201 |
Wiltrout Jeffrey T | officer: VP - Corporate Strategy | 500 JACKSON STREET COLUMBUS IN 47201 |
Harris Carla A | director | 702 SW 8TH STREET BENTONVILLE AR 72716 |
Lamb-hale Nicole | officer: VP - General Counsel | 909 ROSE AVENUE SUITE 200 NORTH BETHESDA MD 20852 |
Newsome Earl | officer: VP - Chief Information Officer | 505 HUNTMAR PARK DR SUITE 300 HERNDON VA 20170 |
Brockhaus John D | officer: VP-Human Resources Operations | 500 JACKSON STREET COLUMBUS IN 47201 |
Narang Mahesh | officer: VP & President - Components | 500 JACKSON STREET COLUMBUS IN 47201 |
Chandler Mary T | officer: VP - Corp. Resp. & Comm. Rel. | 500 JACKSON STREET COLUMBUS IN 47201 |
Nelson Kimberly A | director | ONE GENERAL MILLS BLVD MINNEAPOLIS MN 55426 |
Davis Amy Rochelle | officer: VP & Pres. - New Power Segment | 500 JACKSON STREET COLUMBUS IN 47201 |
Stoner Nathan R | officer: VP - China Area Business Org | 500 JACKSON STREET COLUMBUS IN 47201 |
Kennedy Melina M | officer: VP-Product Compl.-Reg. Affairs | 301 EAST MARKET STREET INDIANAPOLIS IN 46204 |
Fier Walter J | officer: VP - Chief Technical Officer | 500 CENTRAL AVENUE COLUMBUS IN 47201 |
Quintos Karen H | director | ONE DELL WAY ROUND ROCK TX 78682 |
From GuruFocus
Other Sources
By tipranks.com 2022-03-17
By Zacks 2022-02-03
By Zacks 2022-01-28
By Zacks 2022-02-03
By Zacks 2022-01-28
By Zacks 2022-04-01
By Zacks 2022-02-02
By Zacks 2022-02-01
By Zacks 2022-03-07
By tipranks.com 2022-03-17
By Zacks 2022-01-27
By Zacks 2022-01-31
By Zacks 2022-01-27
By Zacks 2022-02-02