CMS Energy Corporation (CMS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,839,000 | 3,433,000 | 2,627,000 | 2,404,000 | 2,331,000 |
| Total current liabilities | US$ in thousands | 2,895,000 | 2,985,000 | 2,204,000 | 3,074,000 | 2,704,000 |
| Current ratio | 0.98 | 1.15 | 1.19 | 0.78 | 0.86 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,839,000K ÷ $2,895,000K
= 0.98
The current ratio of CMS Energy Corporation has exhibited fluctuations over the past five years, indicating varying levels of liquidity and ability to meet short-term obligations. As of December 31, 2023, the current ratio stands at 0.98, showing a decline from the prior year's ratio of 1.15. This implies that the company may have a slightly lower level of current assets relative to current liabilities in the most recent period, potentially raising concerns about its short-term liquidity position.
Comparing the current ratio to previous years, it is evident that the ratio was also relatively stronger in 2021 at 1.19 but dropped significantly in 2020 to 0.78 before recovering in 2022. The ratios from 2019 and 2020 suggest that CMS Energy faced liquidity challenges and had difficulties in meeting its short-term obligations during those periods.
Overall, the trend in the current ratio for CMS Energy Corporation indicates a degree of variability in its short-term liquidity position over the years. It is essential for the company to closely monitor and manage its current assets and liabilities to ensure sufficient liquidity to fund its operations and meet obligations as they come due.
Peer comparison
Dec 31, 2023