CMS Energy Corporation (CMS)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 140,000 | 403,000 | 312,000 | 234,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 136,000 | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 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 | 0.05 | 0.19 | 0.13 | 0.11 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($227,000K
+ $—K)
÷ $2,895,000K
= 0.08
The cash ratio of CMS Energy Corporation has shown fluctuations over the past eight quarters, ranging from a low of 0.21 in Q3 2022 to a high of 0.51 in Q1 2022. The cash ratio indicates the company's ability to cover its short-term liabilities solely with its cash and cash equivalents.
A cash ratio of 0.32 in Q4 2023 suggests that the company had $0.32 in cash and cash equivalents for every dollar of current liabilities during that period. The gradual increase in the cash ratio from Q4 2022 to Q1 2023 indicates an improvement in the company's liquidity position.
However, the decrease in the cash ratio in Q3 2023 followed by a slight increase in Q4 2023 may indicate a decrease in the proportion of cash and cash equivalents relative to current liabilities. This could potentially signal a need for CMS Energy Corporation to manage its liquidity more efficiently to meet its short-term obligations.
Overall, while the cash ratio has shown fluctuations, it is important for CMS Energy Corporation to closely monitor and maintain an adequate level of cash and cash equivalents to ensure its ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023