CMS Energy Corporation (CMS)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,235,000 | 1,224,000 | 1,146,000 | 1,230,000 | 1,115,000 |
| Total assets | US$ in thousands | 33,517,000 | 31,353,000 | 28,753,000 | 29,666,000 | 26,837,000 |
| Operating ROA | 3.68% | 3.90% | 3.99% | 4.15% | 4.15% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,235,000K ÷ $33,517,000K
= 3.68%
CMS Energy Corporation's operating return on assets (operating ROA) has shown a declining trend over the past five years from 4.62% in 2019 to 3.68% in 2023. This decline indicates a decreasing ability of the company to generate operating income from its assets. This could be a cause for concern as it may suggest inefficiencies in the company's operational activities or a decrease in the profitability of its assets. Further analysis is warranted to understand the specific reasons behind this downward trend and to identify potential areas for improvement in operational performance.
Peer comparison
Dec 31, 2023