CMS Energy Corporation (CMS)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		15.78	3.83	5.13	4.03	4.27
DSO	days	23.14	95.24	71.17	90.65	85.52

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.78
= 23.14

The days of sales outstanding (DSO) for CMS Energy Corporation have exhibited fluctuations over the past five years. In 2023, the DSO decreased to 46.18 days from 67.09 days in 2022, reflecting an improvement in the collection period for accounts receivable. This reduction suggests that the company is collecting its accounts receivable more efficiently in the most recent period.

Comparing to the previous years, the DSO in 2021 was 46.96 days, slightly higher than in 2023. However, it is important to note that the DSO in 2021 was still lower than in 2022. In 2020 and 2019, the DSO figures were relatively stable at 48.19 days and 48.15 days, respectively.

Overall, the downward trend in DSO from 2022 to 2023 indicates that CMS Energy Corporation has been successful in managing its accounts receivable and collecting payments from customers more promptly. This improvement in DSO reflects positively on the company's liquidity and cash flow performance. Monitoring DSO over time can provide insights into the effectiveness of the company's credit and collection policies, as well as its overall financial health.