CMS Energy Corporation (CMS)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,515,000 | 7,462,000 | 8,596,000 | 7,329,000 | 6,418,000 |
| Property, plant and equipment | US$ in thousands | 27,461,000 | 25,072,000 | 22,713,000 | 22,352,000 | 21,017,000 |
| Fixed asset turnover | 0.27 | 0.30 | 0.38 | 0.33 | 0.31 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,515,000K ÷ $27,461,000K
= 0.27
The fixed asset turnover ratio for CMS Energy Corporation has shown some fluctuations over the past five years. In 2020, the ratio stood at 0.31, indicating that for every dollar invested in fixed assets, the company generated $0.31 in sales. There was a slight improvement in 2021 with the ratio increasing to 0.33, suggesting that the company became slightly more efficient in utilizing its fixed assets to generate revenue.
The ratio further improved in 2022 to 0.38, reaching its peak over the period analyzed. This indicates that CMS Energy Corporation was able to generate $0.38 in sales for every dollar invested in fixed assets, showcasing an improvement in asset utilization efficiency. However, in 2023, the ratio decreased to 0.30, signaling a decline in the company's ability to generate sales from its fixed assets.
The trend continued in 2024, with the fixed asset turnover ratio dropping further to 0.27. This implies that the company's efficiency in generating revenue from its fixed assets decreased compared to the previous year. Overall, CMS Energy Corporation should focus on improving the efficiency of its fixed asset utilization to enhance its revenue generation capabilities in the future.
Peer comparison
Dec 31, 2024