Cummins
Financial ratios & Valuation

Forward Multiples (2025 – 2028)

2025202620272028
Price/Earnings ratio
18.6616.0914.2012.81
Price/Sales ratio
1.671.551.561.50
Earnings per Share (EPS)
$21.57$25.01$28.35$31.43

Historical Multiples (2014 – 2023)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Median
Valuation Ratios
Price/Earnings ratio
15.9511.1916.5629.4510.1212.3018.8114.8015.9346.1822.9710.12
Price/Sales ratio
1.370.811.311.440.911.171.691.311.220.991.400.91
Price/Book Value ratio
3.392.113.354.052.943.704.173.723.813.834.672.94
Price/Cash Flow ratio
11.627.6011.9312.929.118.7412.3613.9817.478.5531.619.11
Price/Free Cash Flow ratio
17.9412.4317.2217.4113.5911.5515.6721.4532.7712.33142.9413.59
Price/Earnings Growth ratio
1.13-0.853.33-1.080.081.21-1.100.665.10-0.703.710.08
Dividend Yield
1.94%3.97%2.92%2.38%3.31%2.73%2.32%2.56%2.49%2.71%1.99%2.73%
Profitability Indicator Ratios
Gross Profit Margin
25.29%25.88%25.42%24.91%24.13%25.37%24.70%23.70%23.93%24.21%24.39%24.13%
Operating Profit Margin
12.30%10.76%11.01%11.57%11.72%11.45%8.90%11.26%7.95%5.16%4.65%11.45%
Pretax Profit Margin
12.66%10.59%11.02%11.57%11.58%12.02%11.80%11.45%10.04%4.77%8.80%12.02%
Net Profit Margin
8.58%7.32%7.96%4.89%9.00%9.58%9.03%8.87%7.66%2.15%6.13%9.58%
Effective Tax Rate
28.67%27.40%24.55%57.97%20.55%19.97%22.54%21.33%22.56%48.33%25.93%20.55%
Return on Assets
10.46%9.24%9.28%5.52%11.23%11.45%7.90%8.98%7.09%2.29%6.54%11.45%
Return On Equity
21.30%18.89%20.27%13.76%29.13%30.10%22.19%25.14%23.96%8.30%22.20%30.10%
Return on Capital Employed
20.11%18.15%18.04%19.07%21.97%20.03%10.83%16.27%11.83%9.21%7.79%20.03%
Liquidity Ratios
Current Ratio
2.252.081.781.571.531.491.87N/AN/AN/A1.321.49
Quick Ratio
1.531.371.161.010.940.941.331.120.770.730.790.94
Cash ratio
0.570.440.250.240.200.180.530.360.180.160.140.18
Days of Sales Outstanding
55.9453.8663.0664.6459.3656.8370.3860.6267.6359.8257.4956.83
Days of Inventory outstanding
72.8469.7674.7775.3476.0872.3383.8086.7395.7680.2686.5976.08
Operating Cycle
128.79123.62137.83139.98135.44129.16154.18147.36163.39140.08144.08135.44
Days of Payables Outstanding
47.8143.9651.8261.3757.1152.5769.0060.1672.6760.2359.3757.11
Cash Conversion Cycle
80.9879.6586.0178.6178.3276.5885.1887.1990.7279.8584.7178.32
Debt Ratios
Debt Ratio
0.100.100.120.110.120.110.180.170.250.200.230.12
Debt Equity Ratio
0.210.220.260.270.330.310.510.490.870.750.730.33
Long-term Debt to Capitalization
0.170.170.180.170.170.170.300.290.330.350.320.17
Total Debt to Capitalization
0.170.180.210.210.250.230.340.320.460.430.420.25
Interest Coverage Ratio
31.5731.6625.8124.6521.1323.0518.47N/AN/AN/A4.2723.05
Cash Flow to Debt Ratio
1.331.251.041.130.961.340.650.540.240.590.201.34
Company Equity Multiplier
2.032.042.182.492.592.622.802.793.373.613.102.59
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.110.100.110.110.100.130.130.090.060.110.040.13
Free Cash Flow / Operating Cash Flow Ratio
0.640.610.690.740.670.750.780.650.530.690.220.75
Cash Flow Coverage Ratio
1.331.251.041.130.961.340.650.540.240.590.201.34
Short Term Coverage Ratio
20.7832.686.715.442.704.024.913.880.582.090.554.02
Dividend Payout Ratio
31.01%44.46%48.49%70.17%33.53%33.67%43.71%37.96%39.74%125.30%45.63%33.53%