CMS Energy Corporation (CMS)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	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	889,000	901,000	916,000	1,019,000
Inventory	US$ in thousands	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	605,000	699,000	552,000	442,000
Inventory turnover		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	1.47	1.29	1.66	2.31

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,050,000K ÷ $938,000K
= 1.12

The inventory turnover of CMS Energy Corporation has shown fluctuations over the past eight quarters. The highest level was observed in Q1 2022, with a ratio of 7.41, indicating that the company turned over its inventory approximately 7.41 times during that period. This suggests efficient management of inventory levels and good sales performance relative to the amount of inventory held.

Subsequently, the inventory turnover ratio declined but remained above 3.0 in most quarters, indicating that the company continued to efficiently manage its inventory levels. The lowest ratio was recorded in Q3 2022 at 3.07.

In Q2 2023, there was a notable increase in inventory turnover to 4.17, followed by a further increase in Q3 2023 to 3.09, and then another increase in Q4 2023 to 3.11. These fluctuations could be attributed to seasonal factors, changes in demand, or adjustments in the company's inventory management practices.

Overall, the trend in inventory turnover suggests that CMS Energy Corporation has been able to effectively balance its inventory levels with its sales volume, indicating efficient operations in managing and selling its inventory.