CMS Energy Corporation (CMS)
Total asset 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 |
| Total assets | US$ in thousands | 33,517,000 | 31,353,000 | 28,753,000 | 29,666,000 | 26,837,000 |
| Total asset turnover | 0.22 | 0.27 | 0.25 | 0.22 | 0.25 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $7,462,000K ÷ $33,517,000K
= 0.22
The total asset turnover of CMS Energy Corporation has shown fluctuations over the past five years. The ratio declined from 0.26 in 2019 to 0.23 in 2020, indicating that the company generated $0.23 in sales for every dollar invested in total assets in 2020. However, there was a slight improvement in 2021, with the ratio increasing to 0.25. This improvement was followed by a decrease in 2022 to 0.27, indicating that the company generated $0.27 in sales for every dollar of total assets invested. The trend reversed in 2023, with the total asset turnover ratio dropping to 0.22.
The fluctuations in the total asset turnover ratio suggest varying efficiency in utilizing the company's assets to generate revenue over the years. A lower total asset turnover ratio may indicate inefficiencies in asset utilization, while a higher ratio suggests better efficiency. In the case of CMS Energy Corporation, the company should assess the factors influencing these fluctuations and work towards maintaining a more stable and efficient utilization of its total assets to drive profitability and performance.
Peer comparison
Dec 31, 2023