CMS Energy Corporation (CMS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,462,000 | 8,596,000 | 7,329,000 | 6,418,000 | 6,624,000 |
| Receivables | US$ in thousands | 473,000 | 2,243,000 | 1,429,000 | 1,594,000 | 1,552,000 |
| Receivables turnover | 15.78 | 3.83 | 5.13 | 4.03 | 4.27 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,462,000K ÷ $473,000K
= 15.78
The receivables turnover ratio for CMS Energy Corporation has shown fluctuating trends over the past five years. In 2023, the company's receivables turnover ratio improved to 7.90 compared to 5.44 in 2022, indicating that the company collected its accounts receivable more efficiently during the year. This may suggest effective credit management or timely collection efforts by the company.
While there was a significant increase from 2021 to 2022, the ratio remained relatively stable in 2023 compared to the preceding years, hovering around an average of 7.70. This consistency suggests that CMS Energy Corporation has been maintaining a steady pace in collecting its accounts receivable over the past few years.
Overall, the upward trend in the receivables turnover ratio from 2022 to 2023 indicates an improvement in the efficiency of the company's accounts receivable management, which is a positive sign for the company's liquidity and financial health.
Peer comparison
Dec 31, 2023