CMS Energy Corporation (CMS)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,147,000 | 1,116,000 | 1,091,000 | 1,082,000 | 1,050,000 | 1,048,000 | 1,194,000 | 1,317,000 | 1,337,000 | 1,313,000 | 1,179,000 | 1,052,000 | 1,019,000 | 1,020,000 | 938,000 | 873,000 | 837,000 | 798,000 | 817,000 | 871,000 |
| Inventory | US$ in thousands | 769,000 | 884,000 | 779,000 | 677,000 | 938,000 | 1,060,000 | 887,000 | 726,000 | 1,117,000 | 1,304,000 | 845,000 | 454,000 | 667,000 | 760,000 | 539,000 | 407,000 | 576,000 | 639,000 | 506,000 | 434,000 |
| Inventory turnover | 1.49 | 1.26 | 1.40 | 1.60 | 1.12 | 0.99 | 1.35 | 1.81 | 1.20 | 1.01 | 1.40 | 2.32 | 1.53 | 1.34 | 1.74 | 2.14 | 1.45 | 1.25 | 1.61 | 2.01 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,147,000K ÷ $769,000K
= 1.49
CMS Energy Corporation's inventory turnover has shown fluctuations over the past few years. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times the inventory is sold and replaced during a specific period.
From March 31, 2020, to December 31, 2024, the inventory turnover ratio ranged from a low of 0.99 to a high of 2.32. A higher turnover ratio indicates that the company is selling its inventory quickly, which can be a positive sign of efficient inventory management. Conversely, a lower turnover ratio may suggest overstocking or slow-moving inventory.
During this period, the inventory turnover ratio generally fluctuated, indicating variations in the company's inventory management practices. It is essential for CMS Energy Corporation to closely monitor its inventory turnover to ensure optimal levels of inventory are maintained to meet customer demand without excessive carrying costs.
Overall, the trend in CMS Energy Corporation's inventory turnover ratio highlights the importance of effective inventory management in balancing the need to have enough inventory on hand to meet demand while minimizing holding costs and potential obsolescence.
Peer comparison
Dec 31, 2024
Dec 31, 2024