CMS Energy Corporation (CMS)
Quick 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 | 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 | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 473,000 | 295,000 | 312,000 | 1,469,000 | 2,243,000 | 1,544,000 | 1,391,000 | 1,543,000 | 1,429,000 | 1,070,000 | 1,122,000 | 1,509,000 | 1,594,000 | 941,000 | 1,021,000 | 1,150,000 | 1,552,000 | 891,000 | 1,013,000 | 1,602,000 |
| 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 |
| Quick ratio | 0.24 | 0.17 | 0.26 | 0.69 | 0.81 | 0.69 | 0.61 | 1.10 | 0.85 | 0.36 | 0.41 | 0.69 | 0.57 | 0.49 | 0.84 | 0.67 | 0.63 | 0.60 | 0.56 | 0.87 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($227,000K
+ $—K
+ $473,000K)
÷ $2,895,000K
= 0.24
The quick ratio of CMS Energy Corporation has exhibited some fluctuations over the past eight quarters. The ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1.0 indicates that the company may have difficulty meeting its short-term liabilities.
In Q1 2022, the quick ratio was relatively strong at 1.09, suggesting the company had more than enough liquid assets to cover its short-term obligations. However, the ratio decreased in subsequent quarters, reaching its lowest point of 0.50 in Q3 2023. This significant drop could indicate potential liquidity challenges or difficulties in managing short-term obligations during that period.
Overall, the trend of the quick ratio for CMS Energy Corporation demonstrates fluctuations, with the ratio dipping below 1.0 in multiple quarters. This indicates a potential risk in the company's ability to cover its short-term liabilities with its current liquid assets. Further analysis and monitoring of the company's liquidity management may be warranted to ensure financial stability and sustainability in the future.
Peer comparison
Dec 31, 2023