CMS Energy Corporation (CMS)
Total asset 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 |
| Total assets | US$ in thousands | 35,920,000 | 33,517,000 | 31,353,000 | 28,753,000 | 29,666,000 |
| Total asset turnover | 0.21 | 0.22 | 0.27 | 0.25 | 0.22 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $7,515,000K ÷ $35,920,000K
= 0.21
Total asset turnover is a key financial ratio that measures a company's ability to generate revenues relative to its total assets. In the case of CMS Energy Corporation, the total asset turnover ratio has shown some fluctuation over the past five years.
As of December 31, 2020, the total asset turnover was 0.22, indicating that for every dollar of total assets, CMS Energy Corporation generated $0.22 in revenue. This ratio increased to 0.25 by December 31, 2021, suggesting an improvement in the company's efficiency in utilizing its assets to generate sales.
By December 31, 2022, the total asset turnover ratio further increased to 0.27, signaling that CMS Energy Corporation was able to generate $0.27 in revenue for each dollar of assets invested. However, there was a slight decrease in the ratio to 0.22 by December 31, 2023, possibly indicating a temporary decline in the company's asset utilization efficiency.
By December 31, 2024, the total asset turnover ratio decreased slightly to 0.21, which could suggest a potential challenge in efficiently utilizing assets to generate revenue. Overall, although there have been fluctuations in the ratio over the years, CMS Energy Corporation's total asset turnover indicates its ability to effectively utilize its assets to generate sales, albeit with some variation in efficiency levels.
Peer comparison
Dec 31, 2024