CMS Energy Corporation (CMS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,147,000 | 1,050,000 | 1,357,000 | 1,013,000 | 824,000 |
| Inventory | US$ in thousands | 769,000 | 938,000 | 1,117,000 | 667,000 | 576,000 |
| Inventory turnover | 1.49 | 1.12 | 1.21 | 1.52 | 1.43 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,147,000K ÷ $769,000K
= 1.49
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory levels by assessing the number of times it sells and replaces its inventory over a specific period. In the case of CMS Energy Corporation, the inventory turnover ratios for the past five years have varied.
In 2020, the inventory turnover ratio was 1.43, indicating that the company sold and replaced its inventory approximately 1.43 times during that year. The ratio increased to 1.52 in 2021, suggesting a slight improvement in inventory management efficiency. However, there was a decline in the inventory turnover ratio in 2022 to 1.21, and a further decrease to 1.12 in 2023, signaling potential challenges in managing inventory levels effectively.
The inventory turnover ratio rebounded in 2024 to 1.49, indicating a better performance in inventory management compared to the previous two years. Overall, while there have been fluctuations in the inventory turnover ratio for CMS Energy Corporation over the past five years, it is essential for the company to strive for a balance in inventory levels to optimize operational efficiency and profitability.
Peer comparison
Dec 31, 2024