Cummins
Market Concepts
Strategy
100

This quarterly event allows Cummins to update shareholders on performance.

What is an earnings call?

100

This term describes the cost of choosing one investment over another.

What is opportunity cost?

100

Cummins might pursue this type of growth by acquiring another company.

What is inorganic growth?

200

These are two ways Cummins REFINANCES its upcoming debt maturities depending on market conditions and strategic needs

What are cash on hand and new debt issuance to Cummins?

200

This ratio helps assess how efficiently Cummins uses its assets to generate revenue.

What is asset turnover?

200

This is the term for selling off a business unit to focus on core operations.

What is a divestiture?

300

These are the Reasons Cummins withdrew it’s 2025 financial outlook

What Impact do uncertainties in the global economic environment and supply chain disruptions Have?

300

This type of derivative contract gives the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price before a specified date.

What is an option?

300

This is the process of evaluating and selecting long-term investments aligned with strategic goals.

What is capital budgeting?

400

This is the year Cummins was added to the S&P 500

What happened in 2006?

400

This type of fund pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.

What is a mutual fund?

400

This financial buffer helps Cummins weather downturns or unexpected costs.

What is cash reserve or liquidity cushion?

500

Changes in this economic factor can lead to higher borrowing costs for Cummins

What are interest rates?

500

This term describes the practice of using borrowed funds to increase the potential return of an investment

What is margin trading?

500

This type of investment is prioritized when Cummins sees long-term strategic value, even if short-term returns are uncertain.

What is R&D or innovation investment?