Stock Analysis on Net
Stock Analysis on Net

Cummins Inc. (NYSE:CMI)

This company has been moved to the archive! The financial data has not been updated since May 2, 2024.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Cummins Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Accounts payable, principally trade 13.31 14.03 12.74 12.46 12.84
Loans payable 0.87 0.69 0.88 0.75 0.51
Commercial paper 4.67 8.50 1.32 1.43 3.34
Current maturities of long-term debt 0.37 1.89 0.25 0.27 0.16
Accrued compensation, benefits and retirement costs 3.46 2.04 2.88 2.14 2.84
Current portion of accrued product warranty 2.08 2.40 3.18 2.98 4.07
Current portion of deferred revenue 3.81 3.31 3.61 3.05 2.70
Agreement in Principle 6.06 0.00 0.00 0.00 0.00
Marketing accruals 1.25 1.04 1.28 1.07 0.89
Other taxes payable 0.92 0.74 0.99 1.13 1.16
Income taxes payable 0.76 0.57 0.45 0.36 0.26
Current portion of operating lease liabilities 0.43 0.44 0.54 0.57 0.66
Other 2.32 2.05 1.76 1.79 2.29
Other accrued expenses 11.73% 4.84% 5.02% 4.92% 5.26%
Current liabilities 40.32% 37.69% 29.88% 28.00% 31.72%
Long-term debt 15.00 14.85 15.09 15.96 7.99
Deferred revenue 3.02 2.79 3.58 3.71 4.16
Accrued product warranty 2.43 2.46 2.88 2.97 3.27
Pensions 1.66 1.47 1.82 1.91 1.95
Deferred income taxes 1.66 2.14 1.70 1.44 1.55
Long-term portion of operating lease liabilities 1.17 1.21 1.37 1.44 1.87
Accrued compensation 0.67 0.61 0.75 0.90 1.04
Other postretirement benefits 0.41 0.47 0.73 0.88 1.04
Mark-to-market valuation on interest rate derivatives 0.37 0.50 0.08 0.18 0.06
Long-term income taxes 0.35 0.63 1.11 1.28 1.48
Other long-term liabilities 2.02 1.44 1.35 1.61 0.97
Other liabilities 10.72% 10.93% 11.79% 12.60% 13.25%
Long-term liabilities 28.74% 28.56% 30.47% 32.27% 25.39%
Total liabilities 69.05% 66.25% 60.35% 60.27% 57.11%
Redeemable noncontrolling interests 0.00 0.85 0.00 0.00 0.00
Common stock, $2.50 par value 8.01 7.40 10.24 10.63 11.89
Retained earnings 55.78 59.53 70.61 68.15 73.04
Treasury stock, at cost -29.24 -31.07 -38.48 -34.38 -36.61
Common stock held by employee benefits trust, at cost 0.00 0.00 0.00 0.00 -0.01
Accumulated other comprehensive loss -6.89 -6.24 -6.63 -8.76 -10.28
Total Cummins Inc. shareholders’ equity 27.65% 29.62% 35.74% 35.63% 38.04%
Noncontrolling interests 3.29 3.27 3.91 4.10 4.85
Total equity 30.95% 32.90% 39.65% 39.73% 42.89%
Total liabilities, redeemable noncontrolling interests and equity 100.00% 100.00% 100.00% 100.00% 100.00%

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).

Current Liabilities
Current liabilities exhibited an overall upward trend, rising from 31.72% in 2019 to 40.32% in 2023 as a percentage of total liabilities and equity. Notably, commercial paper surged significantly to 8.5% in 2022 before decreasing to 4.67% in 2023. Accounts payable fluctuated modestly but increased in 2022 to 14.03% before slightly declining in 2023. Accrued compensation and retirement costs showed variability, reaching a low in 2022 but experiencing a sharp rise to 3.46% in 2023. Other accrued expenses more than doubled in 2023 to 11.73%, signaling a larger short-term accrual build-up.
Long-Term Liabilities
Long-term liabilities as a proportion of total financing decreased from a peak of 32.27% in 2020 to 28.74% in 2023, indicating a slight reduction in long-term debt relative to total capitalization. Long-term debt remained relatively stable around 15%, while deferred revenue and pension liabilities declined moderately over the period. Other long-term liabilities doubled from under 1% in 2019 to just over 2% in 2023, reflecting growth in miscellaneous obligations. Lease liabilities showed a gradual decrease, consistent with reduced long-term lease commitments.
Total Liabilities
Total liabilities increased steadily from 57.11% in 2019 to 69.05% in 2023, reflecting a growing reliance on liabilities in the capital structure. This increase was primarily driven by current liabilities, which grew significantly, outweighing the slight decline in long-term liabilities. The introduction of a new "Agreement in Principle" liability accounted for 6.06% in 2023, suggesting the recognition of a specific obligation not previously reported.
Shareholders’ Equity
Shareholders’ equity as a share of total liabilities and equity declined consistently from 38.04% in 2019 to 27.65% in 2023, indicating a shrinking equity base relative to total financing. Retained earnings decreased substantially from 73.04% to 55.78%, while common stock percentage also declined. Treasury stock reductions improved equity ratios modestly, but these gains were insufficient to offset declines in retained earnings and accumulated other comprehensive loss, which remained negative but relatively stable around -6% to -7%. Total equity including noncontrolling interests dropped from 42.89% to 30.95% over the five-year timeframe.
Other Observations
Income taxes payable exhibited an upward trend, more than doubling from 0.26% to 0.76%, possibly reflecting higher tax accruals or liabilities. Marketing accruals and current portion of deferred revenue increased slightly, showing modest growth in related liabilities. Long-term income taxes decreased markedly, from 1.48% to 0.35%, highlighting a reclassification or settlement of deferred tax assets/liabilities. The mark-to-market valuation on interest rate derivatives saw volatility, peaking at 0.5% in 2022 before settling lower in 2023. Overall, the company’s leverage increased with notable shifts towards higher current liabilities, while the equity base experienced a material contraction relative to total capitalization.