CMS Energy Corporation (CMS)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,515,000 | 7,476,000 | 7,406,000 | 7,354,000 | 7,462,000 | 7,790,000 | 8,141,000 | 8,506,000 | 8,596,000 | 8,351,000 | 8,052,000 | 7,690,000 | 7,329,000 | 7,023,000 | 6,805,000 | 6,629,000 | 6,418,000 | 6,486,000 | 6,525,000 | 6,588,000 |
| Total current assets | US$ in thousands | 2,790,000 | 2,703,000 | 2,985,000 | 3,091,000 | 2,839,000 | 2,449,000 | 2,603,000 | 2,989,000 | 3,433,000 | 3,026,000 | 2,393,000 | 2,459,000 | 2,627,000 | 2,477,000 | 2,322,000 | 2,513,000 | 2,404,000 | 2,494,000 | 3,532,000 | 2,817,000 |
| Total current liabilities | US$ in thousands | 3,521,000 | 2,191,000 | 2,528,000 | 2,295,000 | 2,895,000 | 2,719,000 | 2,737,000 | 2,942,000 | 2,985,000 | 2,488,000 | 2,389,000 | 1,814,000 | 2,204,000 | 3,254,000 | 3,114,000 | 2,885,000 | 3,074,000 | 2,992,000 | 3,123,000 | 2,940,000 |
| Working capital turnover | — | 14.60 | 16.21 | 9.24 | — | — | — | 180.98 | 19.19 | 15.52 | 2,013.00 | 11.92 | 17.33 | — | — | — | — | — | 15.95 | — |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,515,000K ÷ ($2,790,000K – $3,521,000K)
= —
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio typically indicates better efficiency in managing working capital.
Analyzing the data provided for CMS Energy Corporation, the working capital turnover ratio fluctuated significantly over the period from March 2020 to December 2024. The ratios for March 2020, September 2020, December 2020, March 2021, June 2021, September 2021, June 2023, September 2023, and December 2023 are not available ("—").
In June 2020, the working capital turnover was 15.95, representing a strong efficiency in utilizing working capital to generate revenue. This was followed by a notably high ratio of 2,013.00 in June 2022, which could potentially indicate a significant boost in sales compared to the working capital employed.
The ratios for December 2021, March 2022, September 2022, and December 2022 were 17.33, 11.92, 15.52, and 19.19, respectively, showing relatively good efficiency in working capital utilization during these periods.
However, the ratios for March 2023, December 2024, and September 2024 were 180.98, 9.24, and 14.60, respectively. The exceptionally high ratio in March 2023 could indicate either unusually low sales or inefficient working capital management. The lower ratios in December 2024 and September 2024 may suggest potential challenges in maintaining efficient working capital turnover during these periods.
Overall, CMS Energy Corporation experienced fluctuations in its working capital turnover ratio over the analyzed period, with both strong and weaker efficiency levels observed at different points in time. It would be beneficial for the company to assess the factors contributing to these fluctuations to optimize its working capital management strategies.
Peer comparison
Dec 31, 2024