CMS Energy Corporation (CMS)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,790,000 | 2,839,000 | 3,433,000 | 2,627,000 | 2,404,000 |
| Total current liabilities | US$ in thousands | 3,521,000 | 2,895,000 | 2,985,000 | 2,204,000 | 3,074,000 |
| Current ratio | 0.79 | 0.98 | 1.15 | 1.19 | 0.78 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,790,000K ÷ $3,521,000K
= 0.79
The current ratio of CMS Energy Corporation has shown fluctuations over the past five years. As of December 31, 2020, the current ratio was 0.78, indicating that the company may have had difficulty meeting its short-term obligations with its current assets. However, by December 31, 2021, the current ratio improved to 1.19, suggesting a better ability to cover its current liabilities.
Subsequently, the current ratio decreased slightly to 1.15 by December 31, 2022, maintaining a relatively healthy position in terms of liquidity. However, by December 31, 2023, the current ratio dropped to 0.98, signaling a potential strain on the company's ability to settle its short-term debts with its current assets.
Moreover, the current ratio further declined to 0.79 by December 31, 2024, highlighting a possible liquidity challenge for CMS Energy Corporation. Overall, the trend of the current ratio indicates varying levels of liquidity over the years, and further analysis of the company's current assets and liabilities is recommended to assess its financial health accurately.
Peer comparison
Dec 31, 2024