CMS Energy Corporation (CMS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 84.74% | 85.93% | 84.21% | 86.18% | 91.24% |
| Operating profit margin | 19.79% | 16.55% | 14.24% | 15.64% | 19.16% |
| Pretax margin | 15.69% | 13.86% | 10.82% | 19.76% | 13.56% |
| Net profit margin | 13.35% | 11.89% | 9.74% | 18.46% | 11.76% |
CMS Energy Corporation's profitability ratios have shown some fluctuations over the past five years. The gross profit margin, which indicates the proportion of revenue retained after accounting for the cost of goods sold, has decreased from 91.24% in 2020 to 84.74% in 2024, with a noticeable dip in 2022. This suggests a potential increase in the company's cost of goods sold relative to its revenue.
Similarly, the operating profit margin, reflecting the percentage of revenue left after deducting operating expenses, has fluctuated, reaching its lowest point in 2022 at 14.24% and peaking at 19.79% in 2024. This indicates varying levels of efficiency in managing operating costs over the years.
The pretax margin, representing the percentage of revenue remaining after accounting for all operating expenses but before taxes, also experienced fluctuations, with a significant drop in 2022 to 10.82% before recovering to 15.69% in 2024.
Finally, the net profit margin, which shows the company's bottom-line profitability after all expenses, including taxes, has shown a similar trend to the pretax margin, with a notable decrease in 2022 and a subsequent recovery in 2024.
Overall, while there have been some fluctuations in profitability ratios, CMS Energy Corporation has managed to maintain positive margins, indicating its ability to generate profits over the years despite facing challenges in controlling costs and expenses.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.14% | 3.68% | 3.90% | 3.99% | 4.15% |
| Return on assets (ROA) | 2.79% | 2.65% | 2.67% | 4.71% | 2.55% |
| Return on total capital | 6.35% | 7.60% | 7.20% | 10.43% | 7.98% |
| Return on equity (ROE) | 12.19% | 11.76% | 11.93% | 20.40% | 13.74% |
Based on the provided data for CMS Energy Corporation, we can observe the following trends in profitability ratios:
1. Operating return on assets (Operating ROA) has shown a slight decline from 4.15% in 2020 to 3.68% in 2023 before recovering to 4.14% in 2024. Operating ROA measures the efficiency of operations in generating profits from the company's assets.
2. Return on assets (ROA) has fluctuated between 2.55% in 2020 and 4.71% in 2021, indicating some volatility in the company's ability to generate profits from its total assets.
3. Return on total capital reflects the return generated on all sources of capital invested in the business. The ratio declined from 10.43% in 2021 to 6.35% in 2024, suggesting variability in the company's efficiency in generating returns on its total capital.
4. Return on equity (ROE) measures the profitability of the company from the perspective of its equity shareholders. CMS Energy Corporation's ROE has ranged from 11.76% in 2023 to 20.40% in 2021, showing some fluctuation in the returns earned for its equity shareholders.
Overall, the profitability ratios of CMS Energy Corporation exhibit varying levels of performance over the years, indicating the company's ability to generate returns for its stakeholders from different perspectives, such as assets, capital, and equity. It's important for investors and stakeholders to closely monitor these ratios to assess the company's financial health and performance.