Cummins Balance Sheet Health
Financial Health criteria checks 5/6
Cummins has a total shareholder equity of $10.1B and total debt of $6.8B, which brings its debt-to-equity ratio to 67.7%. Its total assets and total liabilities are $31.8B and $21.7B respectively. Cummins's EBIT is $3.3B making its interest coverage ratio 12.3. It has cash and short-term investments of $3.1B.
Key information
67.7%
Debt to equity ratio
US$6.84b
Debt
Interest coverage ratio | 12.3x |
Cash | US$3.05b |
Equity | US$10.10b |
Total liabilities | US$21.73b |
Total assets | US$31.83b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: C1MI34's short term assets ($15.6B) exceed its short term liabilities ($11.7B).
Long Term Liabilities: C1MI34's short term assets ($15.6B) exceed its long term liabilities ($10.0B).
Debt to Equity History and Analysis
Debt Level: C1MI34's net debt to equity ratio (37.5%) is considered satisfactory.
Reducing Debt: C1MI34's debt to equity ratio has increased from 26.3% to 67.7% over the past 5 years.
Debt Coverage: C1MI34's debt is well covered by operating cash flow (54.8%).
Interest Coverage: C1MI34's interest payments on its debt are well covered by EBIT (12.3x coverage).