CMS Energy Corporation (CMS)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,839,000 | 2,449,000 | 2,603,000 | 2,989,000 | 3,433,000 | 3,026,000 | 2,393,000 | 2,459,000 | 2,627,000 | 2,477,000 | 2,322,000 | 2,513,000 | 2,404,000 | 2,494,000 | 3,532,000 | 2,817,000 | 2,331,000 | 2,305,000 | 2,254,000 | 2,376,000 |
| 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 |
| Current ratio | 0.98 | 0.90 | 0.95 | 1.02 | 1.15 | 1.22 | 1.00 | 1.36 | 1.19 | 0.76 | 0.75 | 0.87 | 0.78 | 0.83 | 1.13 | 0.96 | 0.86 | 1.06 | 0.94 | 1.13 |
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 eight quarters, indicating changes in the company's short-term liquidity position. In Q4 2023, the current ratio stands at 0.98, which suggests that the company may have slightly inadequate current assets to cover its current liabilities. This represents a decline from the previous quarter's current ratio of 0.90, indicating a further strain on liquidity.
Comparing this to the same period in the prior year, the current ratio has significantly decreased from 1.15 in Q4 2022 to the current level of 0.98 in Q4 2023. This downward trend raises concerns about the company's ability to meet its short-term obligations efficiently.
Furthermore, the current ratio has been below the ideal threshold of 1.0 for the past three quarters, indicating a potential liquidity risk for CMS Energy Corporation. Additional analysis of the components of current assets and current liabilities is necessary to gain further insights into the company's liquidity management and financial health.
Peer comparison
Dec 31, 2023