CMS Energy Corporation (CMS)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 103,000 | 227,000 | 164,000 | 452,000 | 32,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 136,000 |
| Total current liabilities | US$ in thousands | 3,521,000 | 2,895,000 | 2,985,000 | 2,204,000 | 3,074,000 |
| Cash ratio | 0.03 | 0.08 | 0.05 | 0.21 | 0.05 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($103,000K
+ $—K)
÷ $3,521,000K
= 0.03
The cash ratio of CMS Energy Corporation has shown fluctuations over the years. As of December 31, 2020, the company had a relatively low cash ratio of 0.05, indicating a limited ability to cover its short-term liabilities solely with cash reserves. However, there was a significant improvement in the cash ratio by December 31, 2021, where it increased to 0.21, suggesting a healthier liquidity position.
Subsequently, the cash ratio declined again to 0.05 by December 31, 2022, indicating a potential decrease in the company's ability to meet short-term obligations with available cash. However, there was a slight improvement by December 31, 2023, with the cash ratio rising to 0.08, though it still remains relatively low.
By December 31, 2024, the cash ratio fell to 0.03, signifying a reduction in the company's ability to cover short-term liabilities with cash alone. Overall, while there have been fluctuations in the cash ratio of CMS Energy Corporation, the trend indicates varying levels of liquidity challenges and emphasizes the importance of monitoring the company's cash position closely.
Peer comparison
Dec 31, 2024