Cummins Balance Sheet Health
Financial Health criteria checks 4/6
Cummins has a total shareholder equity of $11.3B and total debt of $7.5B, which brings its debt-to-equity ratio to 66.5%. Its total assets and total liabilities are $32.1B and $20.7B respectively. Cummins's EBIT is $3.5B making its interest coverage ratio 13. It has cash and short-term investments of $2.3B.
Key information
66.5%
Debt to equity ratio
US$7.54b
Debt
| Interest coverage ratio | 13x |
| Cash | US$2.25b |
| Equity | US$11.34b |
| Total liabilities | US$20.71b |
| Total assets | US$32.05b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: CMI's short term assets ($15.3B) exceed its short term liabilities ($11.6B).
Long Term Liabilities: CMI's short term assets ($15.3B) exceed its long term liabilities ($9.1B).
Debt to Equity History and Analysis
Debt Level: CMI's net debt to equity ratio (46.7%) is considered high.
Reducing Debt: CMI's debt to equity ratio has increased from 29% to 66.5% over the past 5 years.
Debt Coverage: CMI's debt is well covered by operating cash flow (20.2%).
Interest Coverage: CMI's interest payments on its debt are well covered by EBIT (13x coverage).