CMS Energy Corporation (CMS)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 103,000 | 412,000 | 699,000 | 802,000 | 227,000 | 157,000 | 389,000 | 571,000 | 164,000 | 168,000 | 77,000 | 446,000 | 452,000 | 102,000 | 153,000 | 496,000 | 32,000 | 519,000 | 1,587,000 | 834,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 136,000 | — | — | — |
| 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 |
| Cash ratio | 0.03 | 0.19 | 0.28 | 0.35 | 0.08 | 0.06 | 0.14 | 0.19 | 0.05 | 0.07 | 0.03 | 0.25 | 0.21 | 0.03 | 0.05 | 0.17 | 0.05 | 0.17 | 0.51 | 0.28 |
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 fluctuated over the reported periods. It started at a relatively low level of 0.28 on March 31, 2020, increased to 0.51 on June 30, 2020, and then declined to 0.05 by December 31, 2020. The ratio continued to show variability, reaching its lowest point of 0.03 on June 30, 2021, before slightly recovering to 0.25 on March 31, 2022.
Throughout 2022 and 2023, the cash ratio generally remained below 0.20, indicating potential liquidity challenges. However, there was a notable improvement to 0.35 on March 31, 2024, reflecting an increase in the company's cash reserves relative to its current liabilities. Subsequently, the cash ratio tapered off slightly to 0.19 as of September 30, 2024, suggesting a potential need for closer monitoring of cash management practices to ensure adequate liquidity positions in the future.
Overall, the trend of the cash ratio for CMS Energy Corporation indicates fluctuations in the company's ability to cover its short-term obligations with its available cash resources, highlighting the importance of maintaining a healthy liquidity position to support operational needs and financial stability.
Peer comparison
Dec 31, 2024