Name: Cummins Inc. (NYSE:CMI) | Balance Sheet: Assets
Creator: Stock Analysis on Net

Balance Sheet: Assets

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Assets: Selected Items

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Current Assets: Selected Items

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Cummins Inc., consolidated balance sheet: assets

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	2,179)	2,101)	2,592)	3,401)	1,129)
Marketable securities	562)	472)	595)	461)	341)
Cash, cash equivalents and marketable securities	2,741)	2,573)	3,187)	3,862)	1,470)
Accounts and notes receivable, net	5,583)	5,202)	3,990)	3,820)	3,670)
Inventories	5,677)	5,603)	4,355)	3,425)	3,486)
Prepaid expenses and other current assets	1,197)	1,073)	777)	790)	761)
Current assets	15,198)	14,451)	12,309)	11,897)	9,387)
Property, plant and equipment, net	6,249)	5,521)	4,422)	4,255)	4,245)
Investments and advances related to equity method investees	1,800)	1,759)	1,538)	1,441)	1,237)
Goodwill	2,499)	2,343)	1,287)	1,293)	1,286)
Other intangible assets, net	2,519)	2,687)	900)	963)	1,003)
Pension assets	1,197)	1,398)	1,488)	1,042)	1,001)
Deferred income taxes	1,082)	625)	428)	479)	441)
Operating lease assets	501)	492)	444)	438)	496)
Corporate owned life insurance	417)	390)	492)	508)	464)
Other	543)	633)	402)	308)	177)
Other assets	2,543)	2,140)	1,766)	1,733)	1,578)
Long-term assets	16,807)	15,848)	11,401)	10,727)	10,350)
Total assets	32,005)	30,299)	23,710)	22,624)	19,737)

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).

Total assets experienced a substantial upward trajectory over the five-year period, growing from 19,737 million US dollars in 2019 to 32,005 million US dollars in 2023. This represents a total expansion of approximately 62%. The most significant year-over-year growth occurred between 2021 and 2022, during which total assets increased by approximately 27%, signaling a period of aggressive balance sheet expansion.

Liquidity and Working Capital Trends: Current assets rose from 9,387 million US dollars in 2019 to 15,198 million US dollars in 2023. Cash and cash equivalents showed volatility, peaking in 2020 at 3,401 million US dollars before stabilizing around 2,179 million US dollars by 2023. A more consistent upward trend is observed in accounts and notes receivable, which grew from 3,670 million US dollars to 5,583 million US dollars. Inventories exhibited a marked increase, particularly between 2021 and 2022, ending the period at 5,677 million US dollars, suggesting either an increase in production capacity or strategic stockpiling.
Fixed Asset Investment and Capital Expenditure: Property, plant, and equipment, net, demonstrated steady growth, increasing from 4,245 million US dollars in 2019 to 6,249 million US dollars in 2023. The acceleration of this growth starting in 2022 indicates a heightened commitment to capital expenditures and the expansion of physical operating infrastructure.
Strategic Acquisitions and Intangible Assets: A significant structural shift in the balance sheet occurred in 2022. Goodwill rose sharply from 1,287 million US dollars in 2021 to 2,343 million US dollars in 2022, while other intangible assets, net, jumped from 900 million US dollars to 2,687 million US dollars in the same period. The simultaneous spike in both accounts strongly suggests the execution of one or more major acquisitions during the 2022 fiscal year.
Long-term Financial Assets and Obligations: Investments and advances related to equity method investees grew consistently from 1,237 million US dollars in 2019 to 1,800 million US dollars in 2023. Deferred income taxes showed a notable surge in the final year of the analysis, increasing from 625 million US dollars in 2022 to 1,082 million US dollars in 2023. Pension assets peaked in 2021 at 1,488 million US dollars before declining to 1,197 million US dollars by 2023.

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