CMS Energy Corporation (CMS)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		13.40	15.78	3.83	5.13	4.03
DSO	days	27.25	23.14	95.24	71.17	90.65

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.40
= 27.25

The Days of Sales Outstanding (DSO) is a measure used to evaluate how efficiently a company is managing its accounts receivable. Looking at the historical data for CMS Energy Corporation, we observe fluctuations in DSO over the years.

On December 31, 2020, the DSO was reported at 90.65 days, indicating that on average, it took the company more than 3 months to collect payments from its customers. However, there was a noticeable improvement by December 31, 2021, with the DSO decreasing to 71.17 days, suggesting that the company significantly enhanced its collection process.

Subsequently, by December 31, 2022, the DSO increased to 95.24 days, reflecting a potential delay in accounts receivable collection. However, there was a substantial improvement by December 31, 2023, with the DSO dropping to 23.14 days, signaling a remarkable efficiency in the collection of receivables.

In the most recent period, on December 31, 2024, the DSO was at 27.25 days, continuing the trend of efficient accounts receivable management seen in the previous year. Overall, it is evident that CMS Energy Corporation has made strides in optimizing its collection processes over the years, ultimately leading to improved cash flow and financial health.