Balance Sheet: Liabilities and Stockholders’ Equity

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.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Accounts payable, principally trade	4,260)	4,252)	3,021)	2,820)	2,534)
Loans payable	280)	210)	208)	169)	100)
Commercial paper	1,496)	2,574)	313)	323)	660)
Current maturities of long-term debt	118)	573)	59)	62)	31)
Accrued compensation, benefits and retirement costs	1,108)	617)	683)	484)	560)
Current portion of accrued product warranty	667)	726)	755)	674)	803)
Current portion of deferred revenue	1,220)	1,004)	855)	691)	533)
Agreement in Principle	1,938)	—)	—)	—)	—)
Marketing accruals	399)	316)	303)	242)	176)
Other taxes payable	296)	224)	234)	256)	228)
Income taxes payable	242)	173)	107)	82)	52)
Current portion of operating lease liabilities	138)	132)	128)	128)	131)
Other	741)	620)	418)	404)	452)
Other accrued expenses	3,754)	1,465)	1,190)	1,112)	1,039)
Current liabilities	12,903)	11,421)	7,084)	6,335)	6,260)
Long-term debt	4,802)	4,498)	3,579)	3,610)	1,576)
Deferred revenue	966)	844)	850)	840)	821)
Accrued product warranty	777)	744)	684)	672)	645)
Pensions	530)	445)	431)	431)	385)
Deferred income taxes	530)	649)	403)	325)	306)
Long-term portion of operating lease liabilities	374)	368)	326)	325)	370)
Accrued compensation	213)	184)	177)	203)	206)
Other postretirement benefits	131)	141)	173)	199)	206)
Mark-to-market valuation on interest rate derivatives	117)	151)	19)	41)	12)
Long-term income taxes	111)	192)	263)	289)	293)
Other long-term liabilities	647)	437)	320)	365)	192)
Other liabilities	3,430)	3,311)	2,796)	2,850)	2,615)
Long-term liabilities	9,198)	8,653)	7,225)	7,300)	5,012)
Total liabilities	22,101)	20,074)	14,309)	13,635)	11,272)
Redeemable noncontrolling interests	—)	258)	—)	—)	—)
Common stock, $2.50 par value	2,564)	2,243)	2,427)	2,404)	2,346)
Retained earnings	17,851)	18,037)	16,741)	15,419)	14,416)
Treasury stock, at cost	(9,359)	(9,415)	(9,123)	(7,779)	(7,225)
Common stock held by employee benefits trust, at cost	—)	—)	—)	—)	(2)
Accumulated other comprehensive loss	(2,206)	(1,890)	(1,571)	(1,982)	(2,028)
Total Cummins Inc. shareholders’ equity	8,850)	8,975)	8,474)	8,062)	7,507)
Noncontrolling interests	1,054)	992)	927)	927)	958)
Total equity	9,904)	9,967)	9,401)	8,989)	8,465)
Total liabilities, redeemable noncontrolling interests and equity	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).

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Balance sheet item	Description	The company
Current liabilities	Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer.	Cummins Inc. current liabilities increased from 2021 to 2022 and from 2022 to 2023.
Long-term liabilities	Amount of obligation due after one year or beyond the normal operating cycle, if longer.	Cummins Inc. long-term liabilities increased from 2021 to 2022 and from 2022 to 2023.
Total liabilities	Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.	Cummins Inc. total liabilities increased from 2021 to 2022 and from 2022 to 2023.
Total Cummins Inc. shareholders’ equity	Total of all stockholders’ equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity stockholders’ equity attributable to the parent excludes the amount of stockholders’ equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.	Cummins Inc. total Cummins Inc. shareholders’ equity increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Cummins Inc. (NYSE:CMI)

Balance Sheet: Liabilities and Stockholders’ Equity