Current Liabilities

Current portion of accrued product warranty

Cummins Current portion of accrued product warranty increased by 5.0% to $693.00M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 2.1%, from $679.00M to $693.00M. Over 5 years (FY 2020 to FY 2025), Current portion of accrued product warranty shows relatively stable performance with a 0.6% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.

Analysis

StatementBalance Sheet Statement
SectionCurrent Liabilities
CategoryRisk
SignalLower is better
VolatilityModerate
First reportedQ4 2014
Last reportedQ4 2025

How to read this metric

An increase may signal concerns regarding product quality or a larger installed base, while a decrease suggests improved product reliability or lower expected claims.

Detailed definition

This represents the estimated cost of fulfilling warranty obligations for products sold that are expected to be settled...

Peer comparison

Common in heavy machinery and automotive sectors; highly dependent on product reliability and warranty terms.

Metric ID: current_liabilities_product_warranty_accrual_classified_current

Historical Data

19 periods
 Q2 '21Q3 '21Q4 '21Q1 '22Q2 '22Q3 '22Q4 '22Q1 '23Q2 '23Q3 '23Q4 '23Q1 '24Q2 '24Q3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25
Value$661.00M$694.00M$755.00M$798.00M$796.00M$801.00M$726.00M$746.00M$751.00M$731.00M$667.00M$652.00M$660.00M$685.00M$679.00M$685.00M$657.00M$660.00M$693.00M
QoQ Change+5.0%+8.8%+5.7%-0.3%+0.6%-9.4%+2.8%+0.7%-2.7%-8.8%-2.2%+1.2%+3.8%-0.9%+0.9%-4.1%+0.5%+5.0%
YoY Change+20.4%+15.4%-3.8%-6.5%-5.7%-8.7%-8.1%-12.6%-12.1%-6.3%+1.8%+5.1%-0.5%-3.6%+2.1%
Range$652.00M$801.00M
CAGR+1.1%
Avg YoY Growth-1.5%
Median YoY Growth-3.8%
Current Streak2 quarters growth

Frequently Asked Questions

What is Cummins's current portion of accrued product warranty?
Cummins (CMI) reported current portion of accrued product warranty of $693.00M in Q4 2025.
How has Cummins's current portion of accrued product warranty changed year-over-year?
Cummins's current portion of accrued product warranty increased by 2.1% year-over-year, from $679.00M to $693.00M.
What is the long-term trend for Cummins's current portion of accrued product warranty?
Over 5 years (2020 to 2025), Cummins's current portion of accrued product warranty has grown at a 0.6% compound annual growth rate (CAGR), from $674.00M to $693.00M.
What does current portion of accrued product warranty mean?
The estimated cost of warranty claims the company expects to pay out within the next year.