CMS Energy Corporation (CMS)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,515,000 | 7,462,000 | 8,596,000 | 7,329,000 | 6,418,000 |
| Receivables | US$ in thousands | 561,000 | 473,000 | 2,243,000 | 1,429,000 | 1,594,000 |
| Receivables turnover | 13.40 | 15.78 | 3.83 | 5.13 | 4.03 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,515,000K ÷ $561,000K
= 13.40
The receivables turnover ratio for CMS Energy Corporation has exhibited significant fluctuations over the past five years. Starting at 4.03 in December 2020, the ratio increased to 5.13 by December 2021, indicating an improvement in the company's ability to collect its accounts receivable efficiently. However, in December 2022, the ratio decreased to 3.83, signaling a possible lengthening of the collection period.
The most notable change occurred in December 2023 when the receivables turnover ratio spiked to 15.78, suggesting a much quicker conversion of receivables into cash during that period. This may be a positive sign of effective credit management or could be influenced by specific factors such as a decrease in credit sales or a decrease in accounts receivable balance.
Subsequently, in December 2024, the ratio decreased to 13.40, which, although lower than in the previous year, still indicates a relatively strong ability to convert receivables into cash promptly.
Overall, the fluctuation in the receivables turnover ratio for CMS Energy Corporation suggests varying efficiency levels in collecting outstanding receivables. Further analysis would be beneficial to understand the underlying reasons behind these changes and to assess the impact on the company's overall financial performance and liquidity management.
Peer comparison
Dec 31, 2024