CMS Energy Corporation (CMS)

Payables 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
Payables	US$ in thousands	—	—	—	679,000	928,000	949,000	906,000	687,000	875,000	787,000	659,000	538,000	661,000	662,000	629,000	490,000	622,000	598,000	627,000	544,000
Payables turnover		—	—	—	1.94	1.44	1.38	1.30	1.53	1.16	1.30	1.42	1.62	1.27	1.21	1.30	1.78	1.43	1.51	1.46	1.87

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,050,000K ÷ $—K
= —

The payables turnover ratio indicates how efficiently a company is managing its accounts payable by measuring how many times a company pays off its average accounts payable balance within a specific period. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently.

Based on the data provided for CMS Energy Corporation, we observe fluctuations in the payables turnover ratio over the past eight quarters. In Q4 2023, the payables turnover ratio was 3.60, which decreased compared to the previous quarter. This may indicate a slower rate at which CMS Energy Corporation is paying off its accounts payable.

The trend in the payables turnover ratio shows a gradual decrease from Q1 2023 to Q4 2023, indicating a potential lengthening of the company's payment cycle or a decrease in the speed of settling its payables. However, the ratio remained above 3.00 for all quarters, suggesting that CMS Energy Corporation is still managing its accounts payable efficiently overall.

It is important to further investigate the reasons behind the fluctuations in the payables turnover ratio to assess the impact on the company's cash flow management and supplier relationships. Additional analysis of the company's financial statements and industry benchmarks would provide a more comprehensive understanding of CMS Energy Corporation's accounts payable management.