CMS Energy Corporation (CMS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 85.93% | 84.21% | 86.18% | 91.24% | 89.89% |
| Operating profit margin | 16.55% | 14.24% | 15.64% | 19.16% | 16.83% |
| Pretax margin | 13.86% | 10.82% | 19.76% | 13.56% | 12.24% |
| Net profit margin | 11.89% | 9.74% | 18.46% | 11.76% | 10.27% |
CMS Energy Corporation's profitability ratios have shown fluctuations over the past five years.
- The gross profit margin has been relatively stable, ranging from 51.55% to 62.46%, with the highest value in 2020. This indicates the company's ability to efficiently manage its production costs and generate profits from its operations.
- The operating profit margin has also varied, with a range of 14.24% to 20.39%. This ratio reflects the company's ability to control its operating expenses and is crucial for assessing operational efficiency.
- The pretax margin has shown fluctuations as well, ranging from 10.49% to 13.25%. This ratio indicates the company's ability to generate profits before accounting for taxes and further expenses.
- The net profit margin has demonstrated variability, with values ranging from 9.62% to 18.39%. This ratio reflects the company's overall profitability after accounting for all expenses, including taxes.
Overall, CMS Energy Corporation has maintained healthy profitability margins, albeit with fluctuations. It is important for the company to continue monitoring and managing its profitability ratios to ensure sustained financial health and efficiency in its operations.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.68% | 3.90% | 3.99% | 4.15% | 4.15% |
| Return on assets (ROA) | 2.65% | 2.67% | 4.71% | 2.55% | 2.53% |
| Return on total capital | 7.60% | 7.20% | 10.43% | 7.98% | 7.49% |
| Return on equity (ROE) | 11.76% | 11.93% | 20.40% | 13.74% | 13.55% |
CMS Energy Corporation's profitability ratios show a mixed performance over the last five years. Operating return on assets (Operating ROA) has been gradually declining from 4.62% in 2019 to 3.68% in 2023. This indicates that the company's operating income generated per dollar of assets has been decreasing over time.
Return on assets (ROA) has also shown a fluctuating trend, with a significant decrease in 2021 to 2.55%, followed by a slight improvement to 2.62% in 2023. This metric reflects the overall efficiency of the company in generating profits from its assets.
Return on total capital has been decreasing from 6.84% in 2019 to 5.36% in 2023, indicating a decline in the company's ability to generate returns for both equity and debt holders over the years.
Return on equity (ROE) has shown a similar pattern, with a notable drop in 2021 to 13.74%, followed by a modest increase to 11.63% in 2023. This metric demonstrates the profitability of the company in relation to the shareholders' equity.
In conclusion, CMS Energy Corporation's profitability ratios suggest a need for further analysis to understand the factors contributing to the fluctuations in these metrics. Investors and stakeholders may want to examine the company's financial performance in more detail to assess the sustainability and future prospects of its profitability.