CMS Energy Corporation (CMS)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,487,000 | 1,235,000 | 1,224,000 | 1,146,000 | 1,230,000 |
| Total assets | US$ in thousands | 35,920,000 | 33,517,000 | 31,353,000 | 28,753,000 | 29,666,000 |
| Operating ROA | 4.14% | 3.68% | 3.90% | 3.99% | 4.15% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,487,000K ÷ $35,920,000K
= 4.14%
The operating return on assets (ROA) of CMS Energy Corporation has shown a declining trend over the past five years. The operating ROA decreased from 4.15% as of December 31, 2020, to 3.99% in 2021, further dropping to 3.90% in 2022, and to 3.68% as of December 31, 2023. However, there was a slight improvement in the operating ROA in 2024, increasing to 4.14%.
The decreasing trend in operating ROA indicates that the company's operating profit generated from its assets has been declining relative to the size of its asset base. This may raise concerns about the efficiency of asset utilization and operational performance over the years. It is important for CMS Energy Corporation to closely monitor and improve its operational efficiency to enhance its return on assets in the future.
Peer comparison
Dec 31, 2024