Cummins Balance Sheet Health
Financial Health criteria checks 5/6
Cummins has a total shareholder equity of $9.9B and total debt of $6.7B, which brings its debt-to-equity ratio to 67.7%. Its total assets and total liabilities are $32.0B and $22.1B respectively. Cummins's EBIT is $3.4B making its interest coverage ratio 12.3. It has cash and short-term investments of $2.7B.
Key information
67.7%
Debt to equity ratio
US$6.70b
Debt
Interest coverage ratio | 12.3x |
Cash | US$2.74b |
Equity | US$9.90b |
Total liabilities | US$22.10b |
Total assets | US$32.01b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: CMI's short term assets ($15.2B) exceed its short term liabilities ($12.9B).
Long Term Liabilities: CMI's short term assets ($15.2B) exceed its long term liabilities ($9.2B).
Debt to Equity History and Analysis
Debt Level: CMI's net debt to equity ratio (40%) is considered satisfactory.
Reducing Debt: CMI's debt to equity ratio has increased from 28.4% to 67.7% over the past 5 years.
Debt Coverage: CMI's debt is well covered by operating cash flow (59.2%).
Interest Coverage: CMI's interest payments on its debt are well covered by EBIT (12.3x coverage).