Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Cummins Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Consolidated net income	840)	2,183)	2,164)	1,811)	2,268)
Depreciation and amortization	1,024)	784)	662)	673)	672)
Deferred income taxes	(457)	(274)	7)	7)	(4)
Equity in income of investees, net of dividends	(81)	64)	(83)	(105)	(14)
Pension and OPEB expense	8)	24)	83)	108)	75)
Pension contributions and OPEB payments	(134)	(85)	(102)	(121)	(150)
Russian suspension costs, net of recoveries	—)	111)	—)	—)	—)
Accounts and notes receivable	(330)	(697)	(174)	(51)	195)
Inventories	—)	(567)	(945)	46)	291)
Other current assets	(120)	(109)	2)	(39)	(95)
Accounts payable	(66)	538)	217)	288)	(310)
Accrued expenses	2,934)	(170)	541)	121)	(112)
Changes in current assets and liabilities, net of acquisitions	2,418)	(1,005)	(359)	365)	(31)
Other, net	348)	160)	(116)	(16)	365)
Adjustments to reconcile consolidated net income to net cash provided by operating activities	3,126)	(221)	92)	911)	913)
Net cash provided by operating activities	3,966)	1,962)	2,256)	2,722)	3,181)
Capital expenditures	(1,213)	(916)	(734)	(528)	(700)
Acquisitions of businesses, net of cash acquired	(292)	(3,191)	—)	—)	(237)
Investments in marketable securities, acquisitions	(1,409)	(1,073)	(806)	(593)	(495)
Investments in marketable securities, liquidations	1,334)	1,151)	673)	469)	389)
Other, net	(63)	(143)	(6)	(67)	(107)
Net cash used in investing activities	(1,643)	(4,172)	(873)	(719)	(1,150)
Proceeds from borrowings	861)	2,103)	79)	2,014)	11)
Net borrowings (payments) of commercial paper	(779)	2,261)	(10)	(337)	(120)
Payments on borrowings and finance lease obligations	(1,136)	(1,550)	(73)	(73)	(96)
Dividend payments on common stock	(921)	(855)	(809)	(782)	(761)
Repurchases of common stock	—)	(374)	(1,402)	(641)	(1,271)
Payments for purchase of redeemable noncontrolling interests	(175)	—)	—)	—)	—)
Other, net	(27)	84)	(12)	99)	142)
Net cash provided by (used in) financing activities	(2,177)	1,669)	(2,227)	280)	(2,095)
Effect of exchange rate changes on cash and cash equivalents	(68)	50)	35)	(11)	(110)
Net increase (decrease) in cash and cash equivalents	78)	(491)	(809)	2,272)	(174)
Cash and cash equivalents at beginning of year	2,101)	2,592)	3,401)	1,129)	1,303)
Cash and cash equivalents at end of period	2,179)	2,101)	2,592)	3,401)	1,129)

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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Cash flow statement item	Description	The company
Net cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Cummins Inc. net cash provided by operating activities decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net cash used in investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Cummins Inc. net cash used in investing activities decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Net cash provided by (used in) financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Cummins Inc. net cash provided by (used in) financing activities increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Cummins Inc. (NYSE:CMI)

Cash Flow Statement