Cummins (LTS:0I58) Receivables Turnover : 1.52 (As of Mar. 2024)

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What is Cummins Receivables Turnover?

The Receivables Turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by average Accounts Receivable. An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. Cummins's Revenue for the three months ended in Mar. 2024 was $8,403 Mil. Cummins's average Accounts Receivable for the three months ended in Mar. 2024 was $5,523 Mil. Hence, Cummins's Receivables Turnover for the three months ended in Mar. 2024 was 1.52.

Cummins Receivables Turnover Historical Data

The historical data trend for Cummins's Receivables Turnover 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.

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Cummins Receivables Turnover Chart

Cummins Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Receivables Turnover

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6.50

5.80

6.86

6.40

6.32

Cummins Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Receivables Turnover	Get a 7-Day Free Trial															1.53	1.48	1.46	1.52	1.52

Competitive Comparison of Cummins's Receivables Turnover

For the Specialty Industrial Machinery subindustry, Cummins's Receivables Turnover, along with its competitors' market caps and Receivables Turnover 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 Receivables Turnover Distribution in the Industrial Products Industry

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

* The bar in red indicates where Cummins's Receivables Turnover falls into.

Cummins Receivables Turnover Calculation

Receivables Turnover measures the number of times a company collects its average accounts receivable balance.

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

	Receivables Turnover (A: Dec. 2023 )
=	Revenue	/	Average Total Inventories
=	Revenue (A: Dec. 2023 )	/ (	(Accounts Receivable (A: Dec. 2022 )	+	Accounts Receivable (A: Dec. 2023 ))	/	count )
=	34065	/ (	(5202	+	5583)	/	2 )
=	34065	/	5392.5
=	6.32

Cummins's Receivables Turnover for the quarter that ended in Mar. 2024 is calculated as

	Receivables Turnover (Q: Mar. 2024 )
=	Revenue	/	Average Total Inventories
=	Revenue (Q: Mar. 2024 )	/ (	(Accounts Receivable (Q: Dec. 2023 )	+	Accounts Receivable (Q: Mar. 2024 ))	/	count )
=	8403	/ (	(5583	+	5463)	/	2 )
=	8403	/	5523
=	1.52

Cummins (LTS:0I58) Receivables Turnover Explanation

An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. This metric is commonly used to compare companies within the same industry to check whether they are on par with their competitors.

Cummins Receivables Turnover Related Terms

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Cummins (LTS:0I58) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Cummins Inc (LTS:0I58) » Definitions » Receivables Turnover

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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.

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