Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Cummins Inc., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Cummins Inc. current ratio improved from Q2 2023 to Q3 2023 but then deteriorated significantly from Q3 2023 to Q4 2023. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Cummins Inc. quick ratio improved from Q2 2023 to Q3 2023 but then deteriorated significantly from Q3 2023 to Q4 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Cummins Inc. cash ratio improved from Q2 2023 to Q3 2023 but then slightly deteriorated from Q3 2023 to Q4 2023 not reaching Q2 2023 level. |
Current Ratio
Cummins Inc., current ratio calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current assets | 15,198) | 15,912) | 15,410) | 15,368) | 14,451) | 14,398) | 12,762) | 12,596) | 12,309) | 12,320) | 11,931) | 12,122) | 11,897) | 11,062) | 9,834) | 9,790) | 9,387) | 10,228) | 10,450) | 10,091) | ||||||
| Current liabilities | 12,903) | 11,126) | 11,045) | 11,923) | 11,421) | 10,530) | 7,671) | 7,512) | 7,084) | 6,861) | 6,604) | 6,660) | 6,335) | 5,709) | 6,916) | 6,982) | 6,260) | 6,725) | 6,289) | 6,427) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Current ratio1 | 1.18 | 1.43 | 1.40 | 1.29 | 1.27 | 1.37 | 1.66 | 1.68 | 1.74 | 1.80 | 1.81 | 1.82 | 1.88 | 1.94 | 1.42 | 1.40 | 1.50 | 1.52 | 1.66 | 1.57 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 1.14 | 1.15 | 1.17 | 1.16 | 1.22 | 1.22 | 1.25 | 1.30 | 1.33 | 1.36 | 1.35 | 1.33 | 1.39 | 1.42 | 1.41 | 1.17 | 1.05 | 1.11 | 1.03 | 1.07 | ||||||
| Caterpillar Inc. | 1.35 | 1.45 | 1.33 | 1.43 | 1.39 | 1.41 | 1.45 | 1.44 | 1.46 | 1.61 | 1.56 | 1.60 | 1.53 | 1.54 | 1.50 | 1.42 | 1.47 | 1.44 | 1.43 | 1.43 | ||||||
| Eaton Corp. plc | 1.51 | 1.45 | 1.53 | 1.50 | 1.38 | 1.28 | 0.97 | 0.99 | 1.04 | 1.27 | 1.10 | 1.51 | 1.56 | 1.49 | 1.50 | 1.75 | 1.70 | 1.72 | 1.83 | 1.47 | ||||||
| General Electric Co. | 1.18 | 1.17 | 1.25 | 1.25 | 1.16 | 1.10 | 1.13 | 1.19 | 1.28 | 1.80 | 1.81 | 1.96 | 1.58 | 1.27 | 1.22 | 1.14 | 0.99 | 1.07 | 1.11 | 1.13 | ||||||
| Honeywell International Inc. | 1.27 | 1.35 | 1.41 | 1.26 | 1.25 | 1.24 | 1.20 | 1.21 | 1.30 | 1.29 | 1.41 | 1.43 | 1.47 | 1.64 | 1.63 | 1.30 | 1.34 | 1.31 | 1.19 | 1.24 | ||||||
| Lockheed Martin Corp. | 1.21 | 1.36 | 1.36 | 1.30 | 1.32 | 1.28 | 1.27 | 1.27 | 1.42 | 1.42 | 1.36 | 1.38 | 1.39 | 1.33 | 1.31 | 1.23 | 1.22 | 1.28 | 1.20 | 1.17 | ||||||
| RTX Corp. | 1.04 | 1.03 | 1.10 | 1.13 | 1.09 | 1.09 | 1.10 | 1.16 | 1.19 | 1.23 | 1.17 | 1.17 | 1.21 | 1.22 | 1.20 | 1.23 | 1.08 | 1.06 | 1.05 | 1.13 | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 15,198 ÷ 12,903 = 1.18
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Cummins Inc. current ratio improved from Q2 2023 to Q3 2023 but then deteriorated significantly from Q3 2023 to Q4 2023. |
Quick Ratio
Cummins Inc., quick ratio calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | 2,179) | 2,612) | 1,802) | 1,980) | 2,101) | 2,499) | 2,462) | 2,276) | 2,592) | 2,588) | 2,481) | 2,958) | 3,401) | 2,967) | 1,751) | 1,691) | 1,129) | 1,560) | 1,397) | 1,328) | ||||||
| Marketable securities | 562) | 452) | 512) | 459) | 472) | 466) | 536) | 527) | 595) | 430) | 438) | 397) | 461) | 345) | 353) | 339) | 341) | 303) | 335) | 246) | ||||||
| Accounts and notes receivable, net | 5,583) | 5,662) | 5,863) | 5,834) | 5,202) | 4,799) | 4,156) | 4,368) | 3,990) | 4,152) | 4,132) | 4,209) | 3,820) | 3,628) | 3,441) | 3,505) | 3,670) | 3,934) | 4,179) | 4,025) | ||||||
| Total quick assets | 8,324) | 8,726) | 8,177) | 8,273) | 7,775) | 7,764) | 7,154) | 7,171) | 7,177) | 7,170) | 7,051) | 7,564) | 7,682) | 6,940) | 5,545) | 5,535) | 5,140) | 5,797) | 5,911) | 5,599) | ||||||
| Current liabilities | 12,903) | 11,126) | 11,045) | 11,923) | 11,421) | 10,530) | 7,671) | 7,512) | 7,084) | 6,861) | 6,604) | 6,660) | 6,335) | 5,709) | 6,916) | 6,982) | 6,260) | 6,725) | 6,289) | 6,427) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Quick ratio1 | 0.65 | 0.78 | 0.74 | 0.69 | 0.68 | 0.74 | 0.93 | 0.95 | 1.01 | 1.05 | 1.07 | 1.14 | 1.21 | 1.22 | 0.80 | 0.79 | 0.82 | 0.86 | 0.94 | 0.87 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 0.28 | 0.28 | 0.28 | 0.29 | 0.32 | 0.29 | 0.28 | 0.29 | 0.34 | 0.38 | 0.38 | 0.37 | 0.41 | 0.42 | 0.47 | 0.30 | 0.23 | 0.28 | 0.25 | 0.26 | ||||||
| Caterpillar Inc. | 0.74 | 0.76 | 0.74 | 0.79 | 0.79 | 0.78 | 0.81 | 0.84 | 0.89 | 1.00 | 1.02 | 1.08 | 1.02 | 1.01 | 0.98 | 0.91 | 0.98 | 0.93 | 0.94 | 0.91 | ||||||
| Eaton Corp. plc | 0.91 | 0.84 | 0.85 | 0.78 | 0.73 | 0.65 | 0.50 | 0.51 | 0.54 | 0.69 | 0.44 | 0.66 | 0.68 | 0.63 | 0.57 | 0.68 | 0.78 | 0.99 | 1.07 | 0.82 | ||||||
| General Electric Co. | 0.78 | 0.76 | 0.84 | 0.86 | 0.81 | 0.73 | 0.75 | 0.82 | 0.93 | 0.90 | 0.90 | 1.06 | 1.27 | 1.01 | 0.97 | 0.91 | 0.69 | 0.65 | 0.71 | 0.73 | ||||||
| Honeywell International Inc. | 0.84 | 0.92 | 0.98 | 0.84 | 0.88 | 0.85 | 0.82 | 0.84 | 0.94 | 0.96 | 1.06 | 1.08 | 1.15 | 1.27 | 1.26 | 0.93 | 0.99 | 1.00 | 0.87 | 0.92 | ||||||
| Lockheed Martin Corp. | 0.99 | 1.14 | 1.14 | 1.07 | 1.09 | 1.06 | 1.03 | 1.03 | 1.15 | 1.18 | 1.10 | 1.09 | 1.05 | 1.08 | 1.04 | 0.96 | 0.93 | 1.03 | 0.93 | 0.93 | ||||||
| RTX Corp. | 0.63 | 0.63 | 0.68 | 0.71 | 0.69 | 0.70 | 0.71 | 0.76 | 0.81 | 0.82 | 0.79 | 0.79 | 0.78 | 0.84 | 0.75 | 0.81 | 0.73 | 0.71 | 0.70 | 0.75 | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 8,324 ÷ 12,903 = 0.65
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Cummins Inc. quick ratio improved from Q2 2023 to Q3 2023 but then deteriorated significantly from Q3 2023 to Q4 2023. |
Cash Ratio
Cummins Inc., cash ratio calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | 2,179) | 2,612) | 1,802) | 1,980) | 2,101) | 2,499) | 2,462) | 2,276) | 2,592) | 2,588) | 2,481) | 2,958) | 3,401) | 2,967) | 1,751) | 1,691) | 1,129) | 1,560) | 1,397) | 1,328) | ||||||
| Marketable securities | 562) | 452) | 512) | 459) | 472) | 466) | 536) | 527) | 595) | 430) | 438) | 397) | 461) | 345) | 353) | 339) | 341) | 303) | 335) | 246) | ||||||
| Total cash assets | 2,741) | 3,064) | 2,314) | 2,439) | 2,573) | 2,965) | 2,998) | 2,803) | 3,187) | 3,018) | 2,919) | 3,355) | 3,862) | 3,312) | 2,104) | 2,030) | 1,470) | 1,863) | 1,732) | 1,574) | ||||||
| Current liabilities | 12,903) | 11,126) | 11,045) | 11,923) | 11,421) | 10,530) | 7,671) | 7,512) | 7,084) | 6,861) | 6,604) | 6,660) | 6,335) | 5,709) | 6,916) | 6,982) | 6,260) | 6,725) | 6,289) | 6,427) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Cash ratio1 | 0.21 | 0.28 | 0.21 | 0.20 | 0.23 | 0.28 | 0.39 | 0.37 | 0.45 | 0.44 | 0.44 | 0.50 | 0.61 | 0.58 | 0.30 | 0.29 | 0.23 | 0.28 | 0.28 | 0.24 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 0.17 | 0.14 | 0.15 | 0.16 | 0.19 | 0.16 | 0.14 | 0.15 | 0.20 | 0.23 | 0.24 | 0.24 | 0.29 | 0.29 | 0.35 | 0.16 | 0.10 | 0.12 | 0.10 | 0.09 | ||||||
| Caterpillar Inc. | 0.20 | 0.20 | 0.21 | 0.21 | 0.22 | 0.21 | 0.21 | 0.22 | 0.31 | 0.36 | 0.39 | 0.43 | 0.36 | 0.37 | 0.35 | 0.27 | 0.31 | 0.29 | 0.27 | 0.26 | ||||||
| Eaton Corp. plc | 0.34 | 0.25 | 0.20 | 0.09 | 0.09 | 0.08 | 0.07 | 0.06 | 0.08 | 0.11 | 0.06 | 0.20 | 0.19 | 0.13 | 0.09 | 0.08 | 0.12 | 0.18 | 0.18 | 0.08 | ||||||
| General Electric Co. | 0.45 | 0.42 | 0.49 | 0.52 | 0.44 | 0.35 | 0.37 | 0.44 | 0.54 | 0.52 | 0.50 | 0.67 | 0.78 | 0.70 | 0.70 | 0.67 | 0.47 | 0.41 | 0.44 | 0.47 | ||||||
| Honeywell International Inc. | 0.44 | 0.46 | 0.51 | 0.40 | 0.51 | 0.44 | 0.43 | 0.49 | 0.59 | 0.60 | 0.68 | 0.71 | 0.79 | 0.87 | 0.87 | 0.51 | 0.58 | 0.62 | 0.50 | 0.55 | ||||||
| Lockheed Martin Corp. | 0.09 | 0.21 | 0.21 | 0.14 | 0.16 | 0.15 | 0.11 | 0.12 | 0.26 | 0.18 | 0.18 | 0.20 | 0.23 | 0.24 | 0.19 | 0.13 | 0.11 | 0.16 | 0.08 | 0.06 | ||||||
| RTX Corp. | 0.14 | 0.12 | 0.13 | 0.15 | 0.16 | 0.14 | 0.13 | 0.17 | 0.22 | 0.22 | 0.23 | 0.24 | 0.25 | 0.28 | 0.20 | 0.25 | 0.21 | 0.21 | 0.19 | 0.20 | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,741 ÷ 12,903 = 0.21
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Cummins Inc. cash ratio improved from Q2 2023 to Q3 2023 but then slightly deteriorated from Q3 2023 to Q4 2023 not reaching Q2 2023 level. |