CMS Energy Corporation (CMS)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 6,845,000 | 6,879,000 | 6,932,000 | 6,979,000 |
| Total current assets | US$ in thousands | 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 | 2,331,000 | 2,305,000 | 2,254,000 | 2,376,000 |
| Total current liabilities | US$ in thousands | 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 | 2,704,000 | 2,165,000 | 2,386,000 | 2,106,000 |
| Working capital turnover | — | — | — | 180.98 | 19.19 | 15.52 | 2,013.00 | 11.92 | 17.33 | — | — | — | — | — | 15.95 | — | — | 49.14 | — | 25.85 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,462,000K ÷ ($2,839,000K – $2,895,000K)
= —
Based on the data provided, the working capital turnover for CMS Energy Corporation fluctuated significantly over the past eight quarters. In Q4 2022, the working capital turnover was 11.81, which increased to 1,995.50 in Q2 2022, reflecting a substantial improvement in managing working capital during that period. However, in subsequent quarters, there were significant declines in the working capital turnover, dropping to 19.19 in Q4 2022 and further decreasing to 180.98 in Q1 2023.
The working capital turnover measures how efficiently a company is using its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively utilizing its working capital to generate sales, while a lower ratio may suggest inefficiencies in managing working capital.
The significant fluctuations in CMS Energy Corporation's working capital turnover over the quarters may indicate varying levels of operational efficiency and effectiveness in managing its working capital. Further analysis of the company's financial performance and working capital management practices would be necessary to understand the reasons behind these fluctuations and assess the overall effectiveness of its working capital utilization strategy.
Peer comparison
Dec 31, 2023