Cummins Inc. — Earnings Quality Grade F
CMI · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 63 days, change +8 days YoY
AR growth 12.3% exceeds revenue growth -1.3%
Revenue -1.3%, CFFO 143.5%. Cash follows revenue
Expense Quality
Inventory 1.4% vs COGS -2.0%. Normal
CapEx growth 2.2% vs revenue -1.3%. Normal
SG&A/Gross Profit = 36.7%. Normal
Gross margin 25.3%, change +0.5pp. Stable
Cash Flow Quality
CFFO/NI = 1.27. Profits backed by cash
FCF $2.4B, FCF/NI = 0.84
Accruals ratio = -2.3%. Low accruals
Cash $3.6B covers only 44% of debt $8.1B
Balance Sheet Health
Goodwill+Intangibles $4.4B = 36% of equity
Debt/EBITDA = 1.5x. Healthy
Other assets -3.1% vs revenue -1.3%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -7% YoY. Normal
Manipulation Score
M-Score = -2.50 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09