CMS Energy Corporation (CMS)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,050,000 | 1,357,000 | 1,013,000 | 824,000 | 891,000 |
| Payables | US$ in thousands | — | 928,000 | 875,000 | 661,000 | 622,000 |
| Payables turnover | — | 1.46 | 1.16 | 1.25 | 1.43 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,050,000K ÷ $—K
= —
The payables turnover ratio for CMS Energy Corporation has shown some fluctuations over the past five years. In 2023, the company's payables turnover ratio stood at 3.60, which indicates that the company takes approximately 3.60 days to pay its suppliers on average. This ratio decreased compared to 2022 when it was 4.45, suggesting that the company took longer to settle its payables in 2023.
Despite the decrease in 2023, CMS Energy Corporation's payables turnover ratio remained relatively consistent over the period, ranging from 3.47 to 4.46. This stability in the payables turnover ratio suggests that the company has been managing its accounts payable efficiently and consistently over the past five years.
Overall, a payables turnover ratio of around 3.60 indicates that CMS Energy Corporation has a moderate level of efficiency in managing its accounts payable obligations. It is essential for the company to monitor this ratio regularly to ensure timely payments to suppliers and maintain strong relationships within its supply chain.
Peer comparison
Dec 31, 2023