Current Ratio
since 2005
Calculation
Cummins Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2023 | 1.18 | = | 15,198) | ÷ | 12,903) |
| Dec 31, 2022 | 1.27 | = | 14,451) | ÷ | 11,421) |
| Dec 31, 2021 | 1.74 | = | 12,309) | ÷ | 7,084) |
| Dec 31, 2020 | 1.88 | = | 11,897) | ÷ | 6,335) |
| Dec 31, 2019 | 1.50 | = | 9,387) | ÷ | 6,260) |
| Dec 31, 2018 | 1.54 | = | 9,818) | ÷ | 6,384) |
| Dec 31, 2017 | 1.57 | = | 8,928) | ÷ | 5,677) |
| Dec 31, 2016 | 1.78 | = | 7,707) | ÷ | 4,325) |
| Dec 31, 2015 | 2.09 | = | 7,947) | ÷ | 3,803) |
| Dec 31, 2014 | 2.25 | = | 9,055) | ÷ | 4,021) |
| Dec 31, 2013 | 2.57 | = | 8,639) | ÷ | 3,368) |
| Dec 31, 2012 | 2.29 | = | 7,167) | ÷ | 3,136) |
| Dec 31, 2011 | 1.94 | = | 7,091) | ÷ | 3,657) |
| Dec 31, 2010 | 1.93 | = | 6,289) | ÷ | 3,260) |
| Dec 31, 2009 | 2.06 | = | 5,003) | ÷ | 2,432) |
| Dec 31, 2008 | 1.79 | = | 4,713) | ÷ | 2,639) |
| Dec 31, 2007 | 1.78 | = | 4,815) | ÷ | 2,711) |
| Dec 31, 2006 | 1.87 | = | 4,488) | ÷ | 2,399) |
| Dec 31, 2005 | 1.77 | = | 3,916) | ÷ | 2,218) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The liquidity profile over the period from 2005 to 2023 is characterized by an initial phase of strong liquidity expansion followed by a sustained contraction in the current ratio over the most recent years.
- Current Asset Trends
- Current assets exhibited a consistent long-term upward trajectory, increasing from 3,916 million US dollars in 2005 to 15,198 million US dollars by 2023. A notable acceleration in asset accumulation occurred after 2019, with values rising from 9,387 million US dollars to over 15 billion US dollars within a four-year window.
- Current Liability Trends
- Current liabilities remained relatively stable or grew moderately between 2005 and 2021. However, a significant escalation in short-term obligations was observed between 2021 and 2023, during which liabilities rose from 7,084 million US dollars to 12,903 million US dollars.
- Current Ratio Fluctuations
- The current ratio transitioned through three distinct phases. Between 2005 and 2013, the organization strengthened its liquidity position, reaching a peak ratio of 2.57. A period of gradual decline followed from 2014 to 2019, with the ratio retreating to 1.50. Despite a brief recovery to 1.88 in 2020, the ratio experienced a sharp downward trend in the final three years, ending at 1.18 in 2023. This recent decline is primarily driven by the rapid expansion of current liabilities outpacing the growth of current assets.
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Comparison to Competitors
Cummins Inc., current ratio, long-term trends, comparison to competitors
| Cummins Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 1.18 | 1.14 | 1.35 | 1.51 | 1.18 | 1.27 | 1.21 | 1.04 |
| Dec 31, 2022 | 1.27 | 1.22 | 1.39 | 1.38 | 1.16 | 1.25 | 1.32 | 1.09 |
| Dec 31, 2021 | 1.74 | 1.33 | 1.46 | 1.04 | 1.28 | 1.30 | 1.42 | 1.19 |
| Dec 31, 2020 | 1.88 | 1.39 | 1.53 | 1.56 | 1.58 | 1.47 | 1.39 | 1.21 |
| Dec 31, 2019 | 1.50 | 1.05 | 1.47 | 1.70 | 1.16 | 1.34 | 1.22 | 1.08 |
| Dec 31, 2018 | 1.54 | 1.08 | 1.37 | 1.47 | — | 1.29 | 1.12 | 1.13 |
| Dec 31, 2017 | 1.57 | 1.16 | 1.35 | 1.64 | — | 1.38 | 1.38 | 1.35 |
| Dec 31, 2016 | 1.78 | 1.25 | 1.22 | 1.27 | — | 1.41 | 1.20 | 1.30 |
| Dec 31, 2015 | 2.09 | 1.35 | 1.31 | 1.43 | — | 1.09 | 1.15 | 1.18 |
| Dec 31, 2014 | 2.25 | 1.20 | 1.39 | 1.51 | — | 1.50 | 1.11 | 1.30 |
| Dec 31, 2013 | 2.57 | 1.26 | 1.40 | 1.78 | — | 1.49 | 1.20 | 1.29 |
| Dec 31, 2012 | 2.29 | 1.27 | 1.43 | 1.44 | — | 1.35 | 1.14 | 1.24 |
| Dec 31, 2011 | 1.94 | 1.21 | 1.33 | 1.60 | — | 1.31 | 1.16 | 1.38 |
| Dec 31, 2010 | 1.93 | 1.15 | 1.44 | 1.70 | — | 1.28 | 1.15 | 1.33 |
| Dec 31, 2009 | 2.06 | 1.07 | 1.39 | 1.68 | — | 1.25 | 1.17 | 1.29 |
| Dec 31, 2008 | 1.79 | 0.84 | 1.21 | 1.28 | — | 1.08 | 1.01 | 1.24 |
| Dec 31, 2007 | 1.78 | 0.86 | 1.15 | 1.30 | — | 1.15 | 1.11 | 1.26 |
| Dec 31, 2006 | 1.87 | 0.77 | 1.20 | 1.29 | — | 1.21 | 1.06 | 1.24 |
| Dec 31, 2005 | 1.77 | 0.78 | 1.19 | 1.21 | — | 1.15 | 1.12 | 1.12 |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
Cummins Inc., current ratio, long-term trends, comparison to sector (capital goods)
| Cummins Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2023 | 1.18 | 1.18 |
| Dec 31, 2022 | 1.27 | 1.22 |
| Dec 31, 2021 | 1.74 | 1.31 |
| Dec 31, 2020 | 1.88 | 1.43 |
| Dec 31, 2019 | 1.50 | 1.17 |
| Dec 31, 2018 | 1.54 | 1.17 |
| Dec 31, 2017 | 1.57 | 1.29 |
| Dec 31, 2016 | 1.78 | 1.27 |
| Dec 31, 2015 | 2.09 | 1.26 |
| Dec 31, 2014 | 2.25 | 1.29 |
| Dec 31, 2013 | 2.57 | 1.34 |
| Dec 31, 2012 | 2.29 | 1.31 |
| Dec 31, 2011 | 1.94 | 1.29 |
| Dec 31, 2010 | 1.93 | 1.28 |
| Dec 31, 2009 | 2.06 | 1.23 |
| Dec 31, 2008 | 1.79 | 1.07 |
| Dec 31, 2007 | 1.78 | 1.08 |
| Dec 31, 2006 | 1.87 | 1.05 |
| Dec 31, 2005 | 1.77 | 1.03 |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Cummins Inc., current ratio, long-term trends, comparison to industry (industrials)
| Cummins Inc. | Industrials | |
|---|---|---|
| Dec 31, 2023 | 1.18 | 1.16 |
| Dec 31, 2022 | 1.27 | 1.20 |
| Dec 31, 2021 | 1.74 | 1.29 |
| Dec 31, 2020 | 1.88 | 1.41 |
| Dec 31, 2019 | 1.50 | 1.16 |
| Dec 31, 2018 | 1.54 | 1.13 |
| Dec 31, 2017 | 1.57 | 1.24 |
| Dec 31, 2016 | 1.78 | 1.22 |
| Dec 31, 2015 | 2.09 | 1.24 |
| Dec 31, 2014 | 2.25 | 1.26 |
| Dec 31, 2013 | 2.57 | 1.33 |
| Dec 31, 2012 | 2.29 | 1.30 |
| Dec 31, 2011 | 1.94 | 1.30 |
| Dec 31, 2010 | 1.93 | 1.28 |
| Dec 31, 2009 | 2.06 | 1.23 |
| Dec 31, 2008 | 1.79 | 1.06 |
| Dec 31, 2007 | 1.78 | 1.07 |
| Dec 31, 2006 | 1.87 | 1.05 |
| Dec 31, 2005 | 1.77 | 1.05 |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).