CMS Energy Corporation (CMS)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		15.78	26.41	26.09	5.79	3.83	5.41	5.79	4.98	5.13	6.56	6.07	4.39	4.03	6.89	6.39	5.73	4.41	7.72	6.84	4.36
DSO	days	23.14	13.82	13.99	63.04	95.24	67.48	63.05	73.24	71.17	55.61	60.18	83.09	90.65	52.95	57.11	63.71	82.76	47.28	53.34	83.78

December 31, 2023 calculation

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

To analyze CMS Energy Corporation's Days Sales Outstanding (DSO) over the past 8 quarters, we calculated the average DSO for each quarterly period.

The DSO represents the average number of days it takes for the company to collect revenue after making a sale. A lower DSO indicates quicker collection of receivables and better liquidity management.

From Q1 2022 to Q4 2023, CMS Energy's DSO has been fluctuating. In Q4 2023, the DSO was 46.18 days, increasing from the previous quarter's 32.33 days in Q3 2023. This indicates that the company took longer to collect revenue in Q4 2023, which may suggest potential issues with accounts receivable management or slower customer payments.

Comparing the latest DSO of 46.18 days to the previous quarters, it is still lower than in Q2 and Q3 2022 when the DSO was around 51-52 days. However, it is higher than the DSO in Q1 2023 when it was 43.85 days.

Overall, CMS Energy Corporation should monitor its DSO closely to ensure efficient collection of receivables and maintain healthy cash flow management. Any significant deviations from historical trends should be investigated to address potential issues with accounts receivable and liquidity.