Cummins Historical Cash Flow
| CMI Stock | USD 351.38 1.68 0.48% |
Analysis of Cummins cash flow over time is an excellent tool to project Cummins future capital expenditures as well as to predict the amount of cash needed to cover cost of sales, R&D expenses or production expansions. Investors should almost always look for trends in cash flow indicators such as Change In Cash of 77.1 M or Stock Based Compensation of 83 M as it is a great indicator of Cummins ability to facilitate future growth, repay debt on time or pay out dividends.
Financial Statement Analysis is much more than just reviewing and examining Cummins latest accounting reports to predict its past. Macroaxis encourages investors to analyze financial statements over time for various trends across multiple indicators and accounts to determine whether Cummins is a good buy for the upcoming year.
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About Cummins Cash Flow Analysis
The Cash Flow Statement is a financial statement that shows how changes in Cummins balance sheet and income statement accounts affect cash and cash equivalents. It breaks the analysis down to operating, investing, and financing activities. One of the most critical aspects of the cash flow statement is liquidity, which is the degree to which Cummins's non-liquid assets can be easily converted into cash.
Cummins Cash Flow Chart
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Change To Inventory
The increase or decrease in the amount of inventory a company has over a certain period.Stock Based Compensation
Compensation provided to employees in the form of equity or options to purchase company stock. This type of compensation is used to align the interests of employees and shareholders.Free Cash Flow
The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.Change In Working Capital
The difference in the amount of working capital from one period to the next, indicating the change in a company's short-term assets and liabilities.Most accounts from Cummins' cash flow statement are interrelated and interconnected. However, analyzing cash flow statement accounts one by one will only give a small insight into Cummins current financial condition. On the other hand, looking into the entire matrix of cash flow statement accounts, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cummins. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. For more detail on how to invest in Cummins Stock please use our How to Invest in Cummins guide.As of now, Cummins' Change In Working Capital is increasing as compared to previous years. The Cummins' current Begin Period Cash Flow is estimated to increase to about 2.2 B, while Change In Cash is projected to decrease to under 77.1 M.
| 2023 | 2024 (projected) | Free Cash Flow | 2.8B | 2.9B | Stock Based Compensation | 79M | 83.0M |
Cummins cash flow statement Correlations
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Cummins Account Relationship Matchups
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Cummins cash flow statement Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 291M | 46M | (945M) | (567M) | 330M | 346.5M | |
| Change In Cash | (174M) | 2.3B | (809M) | (491M) | 78M | 77.1M | |
| Stock Based Compensation | 41M | 53M | 49M | 31M | 79M | 83.0M | |
| Free Cash Flow | 2.4B | 2.1B | 1.5B | 1.0B | 2.8B | 2.9B | |
| Change In Working Capital | 209M | 554M | (365M) | (1.0B) | 2.5B | 2.6B | |
| Begin Period Cash Flow | 1.3B | 1.1B | 3.4B | 2.6B | 2.1B | 2.2B | |
| Other Cashflows From Financing Activities | 100M | 2.0B | 39M | 4.4B | (202M) | (191.9M) | |
| Depreciation | 672M | 673M | 662M | 784M | 1.0B | 1.1B | |
| Other Non Cash Items | (13M) | (354M) | (249M) | 275M | 75M | 78.8M | |
| Dividends Paid | 761M | 782M | 809M | 855M | 921M | 967.1M | |
| Capital Expenditures | 775M | 575M | 786M | 916M | 1.2B | 1.3B | |
| Total Cash From Operating Activities | 3.2B | 2.7B | 2.3B | 2.0B | 4.0B | 4.2B | |
| Net Income | 2.3B | 1.8B | 2.2B | 2.2B | 840M | 885.8M | |
| Total Cash From Financing Activities | (2.1B) | 280M | (2.2B) | 1.7B | (2.2B) | (2.1B) | |
| End Period Cash Flow | 1.1B | 3.4B | 2.6B | 2.1B | 2.2B | 2.3B | |
| Sale Purchase Of Stock | (1.3B) | (641M) | (1.4B) | (374M) | (4M) | (4.2M) | |
| Change To Account Receivables | (12M) | 31M | (174.0) | (697M) | (330M) | (346.5M) | |
| Other Cashflows From Investing Activities | (280M) | (20M) | 74M | 58M | (63M) | (66.2M) | |
| Change To Liabilities | (422M) | 409M | 758M | 368M | 423.2M | 341.7M | |
| Investments | (170M) | (171M) | (181M) | (4.2B) | (1.5B) | (1.5B) | |
| Net Borrowings | (163M) | 1.6B | (32M) | 2.8B | 3.2B | 3.4B | |
| Total Cashflows From Investing Activities | (1.2B) | (719M) | (873M) | (4.2B) | (3.8B) | (3.6B) | |
| Exchange Rate Changes | 98M | (70M) | (110M) | (11M) | 31.5M | 33.1M | |
| Cash And Cash Equivalents Changes | (174M) | 2.3B | (809M) | (541M) | (486.9M) | (462.6M) | |
| Cash Flows Other Operating | 159M | 258M | 79M | 25M | 28.8M | 30.2M | |
| Change To Netincome | 18M | (424M) | (534M) | (134M) | (120.6M) | (114.6M) | |
| Change Receivables | 195M | (51M) | (174M) | (697M) | (627.3M) | (595.9M) | |
| Change To Operating Activities | 160M | 200M | 354M | (194M) | (174.6M) | (165.9M) |
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When determining whether Cummins offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cummins' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cummins Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cummins Stock:Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cummins. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. For more detail on how to invest in Cummins Stock please use our How to Invest in Cummins guide.You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Is Construction Machinery & Heavy Transportation Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cummins. If investors know Cummins will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cummins listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.277 | Dividend Share 6.86 | Earnings Share 15.29 | Revenue Per Share 245.499 | Quarterly Revenue Growth 0.003 |
The market value of Cummins is measured differently than its book value, which is the value of Cummins that is recorded on the company's balance sheet. Investors also form their own opinion of Cummins' value that differs from its market value or its book value, called intrinsic value, which is Cummins' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cummins' market value can be influenced by many factors that don't directly affect Cummins' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cummins' value and its price as these two are different measures arrived at by different means. Investors typically determine if Cummins is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cummins' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.