Common-Size Balance Sheet: Assets
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Reportable Segments
- Price to FCFE (P/FCFE)
- Selected Financial Data since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
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Cummins Inc., common-size consolidated balance sheet: assets
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Liquidity and Cash Position
- The proportion of cash and cash equivalents relative to total assets experienced a notable peak in 2020 at 15.03%, up from 5.72% in 2019, indicating a significant increase in liquidity during that year. Subsequently, this ratio declined sharply to around 6.9% in 2022 and remained relatively stable at 6.81% in 2023. Marketable securities as a percentage of total assets showed minor fluctuations, peaking modestly in 2021 at 2.51% before declining again. Overall, combined cash, cash equivalents, and marketable securities displayed a similar pattern: a peak in 2020 followed by a decline and stabilization around 8.5% in the last two periods, reflecting a strategic adjustment in short-term asset composition post-2020.
- Receivables and Inventory
- Accounts and notes receivable, net, maintained a relatively stable share of total assets, fluctuating narrowly between approximately 16.8% and 17.4% over the years, suggesting consistent credit policies and collection efficiency. Inventories showed more variability, decreasing from 17.66% in 2019 to a low of 15.14% in 2020, then increasing to a peak of 18.49% in 2022 before slightly declining to 17.74% in 2023. This pattern may reflect inventory management adjustments in response to changes in demand or supply chain conditions.
- Current Assets and Long-Term Asset Composition
- Current assets as a percentage of total assets peaked at 52.59% in 2020, coinciding with the rise in liquidity ratios, before declining to roughly 47.5% in 2022 and 2023, indicating a shift back toward longer-term asset holdings. Correspondingly, long-term assets decreased to 47.41% in 2020 but rebounded to above 52% in subsequent years, highlighting a reversal towards capital investments or non-current holdings after an interim period of elevated current assets.
- Investments, Goodwill, and Intangible Assets
- Investments and advances related to equity method investees remained relatively stable, hovering around 5.6% to 6.5% of total assets. Goodwill decreased slightly from 6.52% in 2019 to 5.43% in 2021, then increased substantially to 7.81% by 2023, suggesting acquisitions or asset revaluations. Other intangible assets followed a similar trajectory, declining until 2021 and then rising sharply to 8.87% in 2022 before a minor decrease, possibly indicating intangible asset capitalization or revaluation events within this period.
- Pension Assets, Deferred Income Taxes, and Lease Assets
- Pension assets generally declined from 5.07% in 2019 to 3.74% in 2023, implying changes in pension funding or actuarial assumptions. Deferred income taxes remained between 1.8% and 3.4%, with a notable increase in 2023. Operating lease assets gradually decreased from 2.51% in 2019 to 1.57% in 2023, consistent with potential changes in lease accounting standards or reduced leased asset holdings.
- Other Assets
- Corporate-owned life insurance assets decreased steadily from 2.35% to around 1.3%, while other assets showed minor fluctuations. The category labeled as "Other" increased from under 1% to a peak of 2.09% in 2022 before decreasing, indicating some variation in miscellaneous asset holdings.
- Overall Asset Allocation
- Total assets are normalized to 100%, and the relative shifts between current and long-term assets highlight a cycle: a move toward liquidity and short-term assets in 2020 amid uncertain conditions, followed by a return to a more balanced or long-term asset emphasis in subsequent years. The growth in goodwill and intangible assets in the latter periods could reflect strategic investments in intangible value drivers, potentially through acquisitions or development.