CMS Energy Corporation (CMS)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,487,000 | 1,468,000 | 1,372,000 | 1,333,000 | 1,235,000 | 1,100,000 | 1,087,000 | 1,082,000 | 1,224,000 | 1,157,000 | 1,159,000 | 1,172,000 | 1,146,000 | 1,249,000 | 1,329,000 | 1,325,000 | 1,230,000 | 1,234,000 | 1,245,000 | 1,215,000 |
| Total assets | US$ in thousands | 35,920,000 | 34,817,000 | 34,355,000 | 33,901,000 | 33,517,000 | 32,513,000 | 32,265,000 | 31,386,000 | 31,353,000 | 30,372,000 | 29,040,000 | 28,740,000 | 28,753,000 | 30,513,000 | 29,953,000 | 29,723,000 | 29,666,000 | 29,280,000 | 28,581,000 | 27,447,000 |
| Operating ROA | 4.14% | 4.22% | 3.99% | 3.93% | 3.68% | 3.38% | 3.37% | 3.45% | 3.90% | 3.81% | 3.99% | 4.08% | 3.99% | 4.09% | 4.44% | 4.46% | 4.15% | 4.21% | 4.36% | 4.43% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,487,000K ÷ $35,920,000K
= 4.14%
Operating return on assets (operating ROA) is a financial ratio that measures a company's ability to generate profits from its assets used in operations.
Analyzing the data provided for CMS Energy Corporation over the last few years, we observe fluctuations in the operating ROA. The values ranged from a high of 4.46% in March 2021 to a low of 3.37% in June 2023.
There is a noticeable trend of a gradual decline in operating ROA from 4.43% in March 2020 to 4.14% in December 2024, with some fluctuations along the way. The company's operating ROA experienced a decrease from around 4.4% levels in 2020-2021 to below 4% in 2022-2024, with some slight improvements in the last quarter of 2024.
A lower operating ROA indicates that the company is less efficient in generating profits from its operational assets. It could be a result of increased operating expenses, declining profitability, or inefficient utilization of assets. The management of CMS Energy Corporation may need to evaluate its operational strategies to improve the efficiency of asset utilization and enhance profitability in the future.
Peer comparison
Dec 31, 2024