Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Cummins Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Cummins Inc. debt to equity ratio deteriorated from Q3 2023 to Q4 2023 but then slightly improved from Q4 2023 to Q1 2024. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Cummins Inc. debt to capital ratio deteriorated from Q3 2023 to Q4 2023 but then slightly improved from Q4 2023 to Q1 2024. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Cummins Inc. debt to assets ratio improved from Q3 2023 to Q4 2023 but then slightly deteriorated from Q4 2023 to Q1 2024. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Cummins Inc. financial leverage ratio increased from Q3 2023 to Q4 2023 but then slightly decreased from Q4 2023 to Q1 2024. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Cummins Inc. interest coverage ratio deteriorated from Q3 2023 to Q4 2023 but then improved from Q4 2023 to Q1 2024 not reaching Q3 2023 level. |
Debt to Equity
Cummins Inc., debt to equity calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Loans payable | 342) | 280) | 231) | 419) | 229) | 210) | 217) | 165) | 243) | 208) | 85) | 54) | 93) | 169) | 129) | 109) | 121) | 100) | 103) | 119) | 70) | |||||||
| Commercial paper | 609) | 1,496) | 1,710) | 1,617) | 2,545) | 2,574) | 2,393) | 705) | 311) | 313) | 200) | 200) | 317) | 323) | 316) | 2,027) | 1,617) | 660) | 902) | 434) | 709) | |||||||
| Current maturities of long-term debt | 113) | 118) | 573) | 575) | 569) | 573) | 55) | 65) | 69) | 59) | 55) | 57) | 61) | 62) | 58) | 66) | 33) | 31) | 37) | 46) | 37) | |||||||
| Long-term debt | 5,771) | 4,802) | 4,950) | 5,089) | 4,409) | 4,498) | 5,450) | 3,490) | 3,502) | 3,579) | 3,602) | 3,620) | 3,620) | 3,610) | 3,609) | 1,639) | 1,580) | 1,576) | 1,619) | 1,624) | 1,605) | |||||||
| Total debt | 6,835) | 6,696) | 7,464) | 7,700) | 7,752) | 7,855) | 8,115) | 4,425) | 4,125) | 4,159) | 3,942) | 3,931) | 4,091) | 4,164) | 4,112) | 3,841) | 3,351) | 2,367) | 2,661) | 2,223) | 2,421) | |||||||
| Total Cummins Inc. shareholders’ equity | 9,067) | 8,850) | 10,658) | 10,337) | 9,623) | 8,975) | 8,380) | 8,738) | 8,436) | 8,474) | 8,082) | 7,866) | 8,109) | 8,062) | 7,700) | 7,192) | 7,068) | 7,507) | 7,810) | 8,278) | 7,820) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | 0.75 | 0.76 | 0.70 | 0.74 | 0.81 | 0.88 | 0.97 | 0.51 | 0.49 | 0.49 | 0.49 | 0.50 | 0.50 | 0.52 | 0.53 | 0.53 | 0.47 | 0.32 | 0.34 | 0.27 | 0.31 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 117.95 | |||||||
| Caterpillar Inc. | 2.15 | 1.94 | 1.81 | 2.07 | 2.04 | 2.33 | 2.34 | 2.35 | 2.20 | 2.29 | 2.21 | 2.23 | 2.30 | 2.42 | 2.55 | 2.81 | 2.61 | 2.58 | 2.54 | 2.45 | 2.32 | |||||||
| Eaton Corp. plc | 0.48 | 0.49 | 0.50 | 0.52 | 0.50 | 0.51 | 0.56 | 0.59 | 0.58 | 0.52 | 0.57 | 0.79 | 0.68 | 0.54 | 0.57 | 0.58 | 0.59 | 0.52 | 0.51 | 0.50 | 0.47 | |||||||
| General Electric Co. | 0.69 | 0.77 | 0.73 | 0.70 | 0.71 | 0.89 | 0.97 | 0.94 | 0.86 | 0.87 | 1.68 | 1.90 | 2.12 | 2.11 | 2.39 | 2.43 | 2.41 | 3.21 | 3.34 | 2.95 | 3.06 | |||||||
| Honeywell International Inc. | 1.53 | 1.29 | 1.18 | 1.24 | 1.13 | 1.17 | 0.96 | 1.09 | 1.05 | 1.06 | 1.19 | 1.19 | 1.19 | 1.28 | 1.23 | 1.22 | 0.91 | 0.87 | 1.03 | 0.91 | 0.86 | |||||||
| Lockheed Martin Corp. | 2.92 | 2.55 | 1.88 | 1.90 | 1.62 | 1.68 | 0.96 | 1.02 | 1.16 | 1.07 | 1.21 | 1.87 | 1.93 | 2.02 | 2.56 | 3.38 | 3.68 | 4.05 | 3.48 | 4.75 | 5.65 | |||||||
| RTX Corp. | 0.71 | 0.73 | 0.51 | 0.49 | 0.47 | 0.44 | 0.48 | 0.45 | 0.43 | 0.43 | 0.44 | 0.44 | 0.44 | 0.44 | 0.48 | 0.49 | 1.18 | 1.04 | 1.10 | 1.11 | 1.14 | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Debt to equity = Total debt ÷ Total Cummins Inc. shareholders’ equity
= 6,835 ÷ 9,067 = 0.75
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Cummins Inc. debt to equity ratio deteriorated from Q3 2023 to Q4 2023 but then slightly improved from Q4 2023 to Q1 2024. |
Debt to Capital
Cummins Inc., debt to capital calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Loans payable | 342) | 280) | 231) | 419) | 229) | 210) | 217) | 165) | 243) | 208) | 85) | 54) | 93) | 169) | 129) | 109) | 121) | 100) | 103) | 119) | 70) | |||||||
| Commercial paper | 609) | 1,496) | 1,710) | 1,617) | 2,545) | 2,574) | 2,393) | 705) | 311) | 313) | 200) | 200) | 317) | 323) | 316) | 2,027) | 1,617) | 660) | 902) | 434) | 709) | |||||||
| Current maturities of long-term debt | 113) | 118) | 573) | 575) | 569) | 573) | 55) | 65) | 69) | 59) | 55) | 57) | 61) | 62) | 58) | 66) | 33) | 31) | 37) | 46) | 37) | |||||||
| Long-term debt | 5,771) | 4,802) | 4,950) | 5,089) | 4,409) | 4,498) | 5,450) | 3,490) | 3,502) | 3,579) | 3,602) | 3,620) | 3,620) | 3,610) | 3,609) | 1,639) | 1,580) | 1,576) | 1,619) | 1,624) | 1,605) | |||||||
| Total debt | 6,835) | 6,696) | 7,464) | 7,700) | 7,752) | 7,855) | 8,115) | 4,425) | 4,125) | 4,159) | 3,942) | 3,931) | 4,091) | 4,164) | 4,112) | 3,841) | 3,351) | 2,367) | 2,661) | 2,223) | 2,421) | |||||||
| Total Cummins Inc. shareholders’ equity | 9,067) | 8,850) | 10,658) | 10,337) | 9,623) | 8,975) | 8,380) | 8,738) | 8,436) | 8,474) | 8,082) | 7,866) | 8,109) | 8,062) | 7,700) | 7,192) | 7,068) | 7,507) | 7,810) | 8,278) | 7,820) | |||||||
| Total capital | 15,902) | 15,546) | 18,122) | 18,037) | 17,375) | 16,830) | 16,495) | 13,163) | 12,561) | 12,633) | 12,024) | 11,797) | 12,200) | 12,226) | 11,812) | 11,033) | 10,419) | 9,874) | 10,471) | 10,501) | 10,241) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | 0.43 | 0.43 | 0.41 | 0.43 | 0.45 | 0.47 | 0.49 | 0.34 | 0.33 | 0.33 | 0.33 | 0.33 | 0.34 | 0.34 | 0.35 | 0.35 | 0.32 | 0.24 | 0.25 | 0.21 | 0.24 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | 1.55 | 1.49 | 1.47 | 1.42 | 1.39 | 1.39 | 1.45 | 1.35 | 1.36 | 1.35 | 1.30 | 1.36 | 1.40 | 1.40 | 1.24 | 1.23 | 1.33 | 1.46 | 1.20 | 1.38 | 0.99 | |||||||
| Caterpillar Inc. | 0.68 | 0.66 | 0.64 | 0.67 | 0.67 | 0.70 | 0.70 | 0.70 | 0.69 | 0.70 | 0.69 | 0.69 | 0.70 | 0.71 | 0.72 | 0.74 | 0.72 | 0.72 | 0.72 | 0.71 | 0.70 | |||||||
| Eaton Corp. plc | 0.32 | 0.33 | 0.33 | 0.34 | 0.34 | 0.34 | 0.36 | 0.37 | 0.37 | 0.34 | 0.36 | 0.44 | 0.40 | 0.35 | 0.36 | 0.37 | 0.37 | 0.34 | 0.34 | 0.33 | 0.32 | |||||||
| General Electric Co. | 0.41 | 0.43 | 0.42 | 0.41 | 0.41 | 0.47 | 0.49 | 0.48 | 0.46 | 0.47 | 0.63 | 0.65 | 0.68 | 0.68 | 0.70 | 0.71 | 0.71 | 0.76 | 0.77 | 0.75 | 0.75 | |||||||
| Honeywell International Inc. | 0.61 | 0.56 | 0.54 | 0.55 | 0.53 | 0.54 | 0.49 | 0.52 | 0.51 | 0.51 | 0.54 | 0.54 | 0.54 | 0.56 | 0.55 | 0.55 | 0.48 | 0.46 | 0.51 | 0.48 | 0.46 | |||||||
| Lockheed Martin Corp. | 0.74 | 0.72 | 0.65 | 0.66 | 0.62 | 0.63 | 0.49 | 0.50 | 0.54 | 0.52 | 0.55 | 0.65 | 0.66 | 0.67 | 0.72 | 0.77 | 0.79 | 0.80 | 0.78 | 0.83 | 0.85 | |||||||
| RTX Corp. | 0.41 | 0.42 | 0.34 | 0.33 | 0.32 | 0.31 | 0.32 | 0.31 | 0.30 | 0.30 | 0.30 | 0.31 | 0.31 | 0.31 | 0.32 | 0.33 | 0.54 | 0.51 | 0.52 | 0.53 | 0.53 | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,835 ÷ 15,902 = 0.43
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Cummins Inc. debt to capital ratio deteriorated from Q3 2023 to Q4 2023 but then slightly improved from Q4 2023 to Q1 2024. |
Debt to Assets
Cummins Inc., debt to assets calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Loans payable | 342) | 280) | 231) | 419) | 229) | 210) | 217) | 165) | 243) | 208) | 85) | 54) | 93) | 169) | 129) | 109) | 121) | 100) | 103) | 119) | 70) | |||||||
| Commercial paper | 609) | 1,496) | 1,710) | 1,617) | 2,545) | 2,574) | 2,393) | 705) | 311) | 313) | 200) | 200) | 317) | 323) | 316) | 2,027) | 1,617) | 660) | 902) | 434) | 709) | |||||||
| Current maturities of long-term debt | 113) | 118) | 573) | 575) | 569) | 573) | 55) | 65) | 69) | 59) | 55) | 57) | 61) | 62) | 58) | 66) | 33) | 31) | 37) | 46) | 37) | |||||||
| Long-term debt | 5,771) | 4,802) | 4,950) | 5,089) | 4,409) | 4,498) | 5,450) | 3,490) | 3,502) | 3,579) | 3,602) | 3,620) | 3,620) | 3,610) | 3,609) | 1,639) | 1,580) | 1,576) | 1,619) | 1,624) | 1,605) | |||||||
| Total debt | 6,835) | 6,696) | 7,464) | 7,700) | 7,752) | 7,855) | 8,115) | 4,425) | 4,125) | 4,159) | 3,942) | 3,931) | 4,091) | 4,164) | 4,112) | 3,841) | 3,351) | 2,367) | 2,661) | 2,223) | 2,421) | |||||||
| Total assets | 31,827) | 32,005) | 32,097) | 31,735) | 31,433) | 30,299) | 29,769) | 24,477) | 24,122) | 23,710) | 23,063) | 22,608) | 22,962) | 22,624) | 21,568) | 20,314) | 20,076) | 19,737) | 20,346) | 20,254) | 19,846) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | 0.21 | 0.21 | 0.23 | 0.24 | 0.25 | 0.26 | 0.27 | 0.18 | 0.17 | 0.18 | 0.17 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.17 | 0.12 | 0.13 | 0.11 | 0.12 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | 0.36 | 0.38 | 0.39 | 0.39 | 0.41 | 0.42 | 0.42 | 0.42 | 0.43 | 0.42 | 0.43 | 0.43 | 0.42 | 0.42 | 0.38 | 0.38 | 0.27 | 0.20 | 0.19 | 0.15 | 0.12 | |||||||
| Caterpillar Inc. | 0.45 | 0.43 | 0.43 | 0.44 | 0.44 | 0.45 | 0.45 | 0.46 | 0.46 | 0.46 | 0.46 | 0.46 | 0.47 | 0.47 | 0.50 | 0.50 | 0.49 | 0.48 | 0.49 | 0.46 | 0.45 | |||||||
| Eaton Corp. plc | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | 0.25 | 0.26 | 0.28 | 0.27 | 0.25 | 0.27 | 0.33 | 0.30 | 0.25 | 0.26 | 0.27 | 0.27 | 0.25 | 0.25 | 0.25 | 0.24 | |||||||
| General Electric Co. | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.17 | 0.17 | 0.18 | 0.18 | 0.18 | 0.27 | 0.27 | 0.29 | 0.30 | 0.31 | 0.32 | 0.32 | 0.34 | 0.35 | 0.34 | 0.34 | |||||||
| Honeywell International Inc. | 0.38 | 0.33 | 0.33 | 0.34 | 0.32 | 0.31 | 0.28 | 0.31 | 0.31 | 0.30 | 0.33 | 0.33 | 0.34 | 0.35 | 0.35 | 0.35 | 0.28 | 0.27 | 0.31 | 0.28 | 0.28 | |||||||
| Lockheed Martin Corp. | 0.35 | 0.33 | 0.31 | 0.31 | 0.29 | 0.29 | 0.22 | 0.22 | 0.23 | 0.23 | 0.23 | 0.23 | 0.24 | 0.24 | 0.25 | 0.26 | 0.26 | 0.27 | 0.28 | 0.28 | 0.29 | |||||||
| RTX Corp. | 0.27 | 0.27 | 0.22 | 0.22 | 0.21 | 0.20 | 0.21 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.33 | 0.31 | 0.32 | 0.33 | 0.33 | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 6,835 ÷ 31,827 = 0.21
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Cummins Inc. debt to assets ratio improved from Q3 2023 to Q4 2023 but then slightly deteriorated from Q4 2023 to Q1 2024. |
Financial Leverage
Cummins Inc., financial leverage calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Total assets | 31,827) | 32,005) | 32,097) | 31,735) | 31,433) | 30,299) | 29,769) | 24,477) | 24,122) | 23,710) | 23,063) | 22,608) | 22,962) | 22,624) | 21,568) | 20,314) | 20,076) | 19,737) | 20,346) | 20,254) | 19,846) | |||||||
| Total Cummins Inc. shareholders’ equity | 9,067) | 8,850) | 10,658) | 10,337) | 9,623) | 8,975) | 8,380) | 8,738) | 8,436) | 8,474) | 8,082) | 7,866) | 8,109) | 8,062) | 7,700) | 7,192) | 7,068) | 7,507) | 7,810) | 8,278) | 7,820) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | 3.51 | 3.62 | 3.01 | 3.07 | 3.27 | 3.38 | 3.55 | 2.80 | 2.86 | 2.80 | 2.85 | 2.87 | 2.83 | 2.81 | 2.80 | 2.82 | 2.84 | 2.63 | 2.61 | 2.45 | 2.54 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 961.67 | |||||||
| Caterpillar Inc. | 4.75 | 4.49 | 4.24 | 4.68 | 4.61 | 5.16 | 5.19 | 5.16 | 4.82 | 5.02 | 4.85 | 4.85 | 4.87 | 5.11 | 5.13 | 5.57 | 5.35 | 5.38 | 5.22 | 5.34 | 5.10 | |||||||
| Eaton Corp. plc | 2.00 | 2.02 | 2.03 | 2.05 | 2.04 | 2.06 | 2.14 | 2.15 | 2.12 | 2.07 | 2.14 | 2.39 | 2.27 | 2.13 | 2.14 | 2.14 | 2.17 | 2.04 | 2.01 | 1.98 | 1.95 | |||||||
| General Electric Co. | 5.49 | 5.96 | 5.47 | 5.23 | 5.20 | 5.16 | 5.75 | 5.35 | 4.92 | 4.93 | 6.33 | 7.09 | 7.30 | 7.13 | 7.64 | 7.62 | 7.43 | 9.40 | 9.42 | 8.71 | 8.96 | |||||||
| Honeywell International Inc. | 3.99 | 3.88 | 3.56 | 3.60 | 3.54 | 3.73 | 3.40 | 3.55 | 3.45 | 3.47 | 3.60 | 3.56 | 3.53 | 3.68 | 3.51 | 3.50 | 3.25 | 3.17 | 3.32 | 3.23 | 3.12 | |||||||
| Lockheed Martin Corp. | 8.27 | 7.67 | 6.11 | 6.17 | 5.66 | 5.71 | 4.35 | 4.53 | 5.15 | 4.64 | 5.38 | 7.99 | 8.15 | 8.43 | 10.25 | 13.22 | 14.29 | 15.20 | 12.66 | 16.79 | 19.34 | |||||||
| RTX Corp. | 2.65 | 2.71 | 2.33 | 2.24 | 2.22 | 2.19 | 2.25 | 2.26 | 2.20 | 2.21 | 2.23 | 2.23 | 2.24 | 2.25 | 2.37 | 2.40 | 3.54 | 3.34 | 3.44 | 3.41 | 3.46 | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Financial leverage = Total assets ÷ Total Cummins Inc. shareholders’ equity
= 31,827 ÷ 9,067 = 3.51
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Cummins Inc. financial leverage ratio increased from Q3 2023 to Q4 2023 but then slightly decreased from Q4 2023 to Q1 2024. |
Interest Coverage
Cummins Inc., interest coverage calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net income attributable to Cummins Inc. | 1,993) | (1,431) | 656) | 720) | 790) | 631) | 400) | 702) | 418) | 394) | 534) | 600) | 603) | 501) | 501) | 276) | 511) | 300) | 622) | 675) | 663) | |||||||
| Add: Net income attributable to noncontrolling interest | 35) | 38) | 34) | 17) | 16) | 13) | 9) | 5) | 5) | 6) | 7) | 12) | 8) | 9) | 3) | (7) | 17) | (2) | (6) | 10) | 6) | |||||||
| Add: Income tax expense | 193) | 163) | 188) | 212) | 223) | 134) | 199) | 148) | 155) | 114) | 134) | 167) | 172) | 125) | 182) | 93) | 127) | 65) | 139) | 186) | 176) | |||||||
| Add: Interest expense | 89) | 92) | 97) | 99) | 87) | 87) | 61) | 34) | 17) | 26) | 28) | 29) | 28) | 29) | 25) | 23) | 23) | 22) | 26) | 29) | 32) | |||||||
| Earnings before interest and tax (EBIT) | 2,310) | (1,138) | 975) | 1,048) | 1,116) | 865) | 669) | 889) | 595) | 540) | 703) | 808) | 811) | 664) | 711) | 385) | 678) | 385) | 781) | 900) | 877) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Interest coverage1 | 8.47 | 5.34 | 10.82 | 11.07 | 13.16 | 15.17 | 19.51 | 25.97 | 26.46 | 25.78 | 26.19 | 26.97 | 24.49 | 24.38 | 23.22 | 23.71 | 27.44 | 27.00 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | 0.21 | 0.18 | -0.06 | -0.85 | -0.53 | -0.98 | -2.54 | -1.40 | -1.31 | -0.88 | -2.29 | -2.55 | -4.26 | -5.71 | -3.83 | -3.86 | -6.13 | -2.19 | — | — | — | |||||||
| Caterpillar Inc. | 27.68 | 26.66 | 24.81 | 23.80 | 21.33 | 20.80 | 22.05 | 20.08 | 19.10 | 17.88 | 14.11 | 11.79 | 9.28 | 8.80 | 9.94 | 13.07 | 17.44 | 19.62 | — | — | — | |||||||
| Eaton Corp. plc | 32.04 | 26.34 | 22.25 | 19.68 | 19.85 | 21.22 | 21.33 | 24.31 | 22.57 | 21.11 | 20.08 | 15.71 | 11.87 | 12.72 | 11.39 | 11.72 | 13.79 | 11.98 | — | — | — | |||||||
| General Electric Co. | 5.94 | 10.12 | 9.41 | 8.49 | 6.73 | 1.88 | -1.66 | -1.16 | -1.49 | -0.96 | 2.15 | 1.11 | 0.65 | 2.59 | 2.16 | 2.11 | 2.64 | 1.27 | — | — | — | |||||||
| Honeywell International Inc. | 9.89 | 10.36 | 10.68 | 12.45 | 14.34 | 16.41 | 20.95 | 20.60 | 21.35 | 22.09 | 20.98 | 18.89 | 16.79 | 17.75 | 18.10 | 20.68 | 23.18 | 22.17 | — | — | — | |||||||
| Lockheed Martin Corp. | 9.19 | 9.84 | 10.42 | 11.74 | 10.58 | 11.72 | 13.31 | 10.88 | 14.12 | 14.27 | 13.67 | 15.97 | 15.44 | 14.93 | 14.16 | 13.35 | 12.63 | 12.09 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Interest coverage
= (EBITQ1 2024
+ EBITQ4 2023
+ EBITQ3 2023
+ EBITQ2 2023)
÷ (Interest expenseQ1 2024
+ Interest expenseQ4 2023
+ Interest expenseQ3 2023
+ Interest expenseQ2 2023)
= (2,310 + -1,138 + 975 + 1,048)
÷ (89 + 92 + 97 + 99)
= 8.47
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Cummins Inc. interest coverage ratio deteriorated from Q3 2023 to Q4 2023 but then improved from Q4 2023 to Q1 2024 not reaching Q3 2023 level. |