CMS Energy Corporation (CMS)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,179,000 | 1,034,000 | 930,000 | 1,448,000 | 870,000 |
| Revenue | US$ in thousands | 7,515,000 | 7,462,000 | 8,596,000 | 7,329,000 | 6,418,000 |
| Pretax margin | 15.69% | 13.86% | 10.82% | 19.76% | 13.56% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,179,000K ÷ $7,515,000K
= 15.69%
To analyze the pretax margin trend of CMS Energy Corporation over the past five years, we can see the following:
- December 31, 2020: Pretax margin was 13.56%
- December 31, 2021: Pretax margin increased to 19.76%
- December 31, 2022: Pretax margin decreased to 10.82%
- December 31, 2023: Pretax margin slightly increased to 13.86%
- December 31, 2024: Pretax margin further increased to 15.69%
The pretax margin measures the efficiency of the company in controlling operating expenses relative to its revenue before accounting for taxes. The increase in pretax margin from 2020 to 2021 indicates improved cost management and operational efficiency. However, the significant decrease in 2022 could indicate potential challenges or increased expenses during that period.
Overall, CMS Energy Corporation has shown variability in its pretax margin over the past five years, with some fluctuations but generally maintaining a level above 10%. Management should continue to monitor and manage expenses effectively to sustain or improve the pretax margin going forward.
Peer comparison
Dec 31, 2024