Debt-to-Equity Ratio

CMI’s debt-to-equity ratio of 0.62x means the company uses $0.62 of debt for every $1.00 of shareholders’ equity, indicating a moderate reliance on borrowed funds.

This ratio sits below the sector median of 0.73x, placing the firm in the 43rd percentile among its peers—meaning 57% of sector companies carry more debt relative to equity. The metric shows no trend because the year-over-year and quarter-over-quarter changes are listed as N/A, so there is no data to assess direction. The combination of a below-median debt level with an unknown trend suggests a conservative capital structure that poses limited near-term financial risk, but the lack of trend data offers no insight into improving or deteriorating leverage. This metric supports the overall NEUTRAL verdict: the low debt ratio is a positive factor, yet without a trend to confirm stability or improvement, it does not tilt the outlook decisively toward bullish or bearish.

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