CMS Energy Corporation (CMS)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 15.78 26.41 26.09 5.79 3.83 5.41 5.79 4.98 5.13 6.56 6.07 4.39 4.03 6.89 6.39 5.73 4.41 7.72 6.84 4.36
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
Working capital turnover — — — 180.98 19.19 15.52 2,013.00 11.92 17.33 — — — — — 15.95 — — 49.14 — 25.85

CMS Energy Corporation's activity ratios provide insight into the efficiency of its operations and management of its working capital.

- Inventory turnover has fluctuated over the quarters, ranging from 3.07 to 5.65. The decreasing trend in inventory turnover indicates that the company is taking longer to sell its inventory, which may lead to higher carrying costs or obsolete inventory.

- Receivables turnover has shown an increasing trend, reaching a high of 11.29 in the most recent quarter. This indicates that the company is collecting its accounts receivables more quickly, which is a positive sign of efficient credit and collection policies.

- Payables turnover has also fluctuated but has generally remained stable between 3.60 and 5.97. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly, which may impact relationships with suppliers or indicate favorable credit terms.

- Working capital turnover has varied significantly, with a notable spike in Q2 2022 to 1,995.50 before dropping back down in subsequent quarters. A high working capital turnover ratio may indicate efficient utilization of working capital to generate revenue, while a low ratio could suggest inefficiencies in managing working capital.

Overall, analyzing these activity ratios together provides a comprehensive view of CMS Energy Corporation's operational efficiency, inventory management, credit policies, and working capital utilization over the quarters.

Average number of days

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
Days of inventory on hand (DOH) days 326.07 369.18 271.15 201.21 304.94 362.50 261.60 157.52 238.92 271.96 209.74 170.17 251.18 292.27 226.06 181.87 248.40 283.17 219.96 158.32
Days of sales outstanding (DSO) days 23.14 13.82 13.99 63.04 95.24 67.48 63.05 73.24 71.17 55.61 60.18 83.09 90.65 52.95 57.11 63.71 82.76 47.28 53.34 83.78
Number of days of payables days — — — 188.18 253.34 263.81 280.48 238.36 313.42 281.62 256.43 224.94 288.25 302.79 281.01 205.34 255.38 242.25 249.84 194.86

The Days of Inventory on Hand (DOH) for CMS Energy Corporation fluctuated over the past eight quarters, ranging from a low of 49.25 days in Q1 2022 to a high of 118.93 days in Q3 2022. The company has shown some variability in managing its inventory levels efficiently.

In terms of Days of Sales Outstanding (DSO), CMS Energy Corporation has experienced fluctuations as well, with the number of days ranging from 32.33 days in Q2 and Q3 2023 to a high of 67.09 days in Q4 2022. This indicates variability in the company's ability to collect receivables promptly.

The Number of Days of Payables for CMS Energy Corporation has also varied, with a range from 61.13 days in Q1 2023 to 101.37 days in Q4 2023. This suggests that the company has flexibility in managing its payables, with some periods reflecting longer payment terms.

Overall, the activity ratios for CMS Energy Corporation show fluctuations over the past eight quarters, indicating some variability in the company's efficiency in managing its inventory, collecting receivables, and managing payables. It would be important to further analyze the reasons behind these fluctuations to understand the company's operational effectiveness.

Long-term

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
Fixed asset turnover 0.30 0.32 0.34 0.37 0.38 0.37 0.37 0.34 0.33 0.32 0.32 0.31 0.31 0.31 0.34 0.34 0.36 0.37 0.38 0.38
Total asset turnover 0.22 0.24 0.25 0.27 0.27 0.27 0.28 0.27 0.25 0.23 0.23 0.22 0.22 0.22 0.23 0.24 0.26 0.26 0.27 0.28

The fixed asset turnover ratio for CMS Energy Corporation has been gradually declining over the past eight quarters, from 0.38 in Q4 2022 to 0.30 in Q4 2023. This decrease indicates that the company's efficiency in generating revenue from its fixed assets has weakened. It suggests that the company may not be utilizing its fixed assets as effectively to generate sales.

On the other hand, the total asset turnover ratio has also shown a downward trend, decreasing from 0.27 in Q1 2022 to 0.22 in Q4 2023. This indicates that CMS Energy Corporation is generating less revenue for each dollar of total assets compared to previous quarters. The declining total asset turnover ratio suggests that the company's overall asset utilization efficiency has worsened.

Overall, these long-term activity ratios for CMS Energy Corporation indicate a decline in asset efficiency and revenue generation from both fixed and total assets over the past eight quarters. This trend may raise concerns about the company's operational effectiveness and its ability to generate sufficient revenue from its asset base.