CMS Energy Corporation (CMS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,462,000 | 8,596,000 | 7,329,000 | 6,418,000 | 6,624,000 |
| Property, plant and equipment | US$ in thousands | 25,072,000 | 22,713,000 | 22,352,000 | 21,017,000 | 18,926,000 |
| Fixed asset turnover | 0.30 | 0.38 | 0.33 | 0.31 | 0.35 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,462,000K ÷ $25,072,000K
= 0.30
The fixed asset turnover ratio for CMS Energy Corporation has been fluctuating over the past five years. It decreased from 0.36 in 2019 to 0.32 in 2020, indicating a decline in the company's ability to generate revenue from its fixed assets. However, there was a slight improvement in 2021 as the ratio increased to 0.33. Subsequently, in 2022, there was a further increase to 0.38, suggesting better utilization of fixed assets to generate sales.
In 2023, the fixed asset turnover ratio decreased to 0.30, indicating a decline in the company's efficiency in utilizing its fixed assets to generate revenue compared to the previous year. This downward trend in 2023 could be a point of concern as it may signify lower productivity or a decrease in sales generated from the fixed assets.
Overall, while there have been fluctuations in the fixed asset turnover ratio of CMS Energy Corporation over the years, it is essential for the company to continue monitoring and improving its efficiency in utilizing fixed assets to generate revenue effectively.
Peer comparison
Dec 31, 2023