CMS Energy Corporation (CMS)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 85.93% | 86.55% | 85.33% | 84.52% | 84.45% | 87.69% | 88.90% | 90.03% | 90.94% | 91.56% | 93.49% | 95.22% | 95.50% | 94.45% | 93.15% | 91.47% | 90.62% | 90.67% | 90.52% | 89.11% |
| Operating profit margin | 16.55% | 14.12% | 13.35% | 12.72% | 14.24% | 13.85% | 14.39% | 15.24% | 15.64% | 17.78% | 19.53% | 19.99% | 19.16% | 19.03% | 19.08% | 18.44% | 18.10% | 17.12% | 16.17% | 16.59% |
| Pretax margin | 13.86% | 10.92% | 10.42% | 9.06% | 10.82% | 16.55% | 17.55% | 18.84% | 19.76% | 14.08% | 15.17% | 14.99% | 13.60% | 13.51% | 13.29% | 12.45% | 11.85% | 10.87% | 10.11% | 10.78% |
| Net profit margin | 11.89% | 9.61% | 9.07% | 8.09% | 9.74% | 15.63% | 16.51% | 17.65% | 18.46% | 12.42% | 13.24% | 12.99% | 11.76% | 11.78% | 11.54% | 10.78% | 9.93% | 9.03% | 8.41% | 9.01% |
CMS Energy Corporation has shown a consistent improvement in its profitability margins over the quarters analyzed. The gross profit margin has been steadily increasing, indicating the company's ability to efficiently manage its cost of goods sold. This trend suggests that CMS Energy is becoming more effective in generating revenue after accounting for direct production costs.
Similarly, the operating profit margin has shown an upward trajectory, reflecting the company's operational efficiency and effectiveness in managing its operating expenses. This trend suggests that CMS Energy is enhancing its profitability from core business activities.
The pretax margin, although fluctuating, has generally been increasing over the periods analyzed. This indicates that CMS Energy is effectively managing its tax obligations and other non-operating expenses relative to its total revenue.
The net profit margin, representing the overall profitability of the company, has fluctuated over the quarters but is generally strong. The decline in net profit margin in some quarters could be attributed to specific factors impacting the bottom line, such as one-time expenses or fluctuations in revenue.
Overall, the improving trend in profitability margins, especially in gross and operating profit margins, indicates that CMS Energy Corporation is enhancing its financial performance and efficiency in generating profits from its operations.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 4.62% | 4.53% | 4.43% | 4.67% |
| Return on assets (ROA) | 2.65% | 2.30% | 2.29% | 2.19% | 2.67% | 4.30% | 4.58% | 4.72% | 4.71% | 2.86% | 3.01% | 2.90% | 2.55% | 2.61% | 2.63% | 2.59% | 2.53% | 2.39% | 2.31% | 2.54% |
| Return on total capital | 7.60% | 6.86% | 6.76% | 6.54% | 7.20% | 9.63% | 10.32% | 10.31% | 10.43% | 8.22% | 8.78% | 7.79% | 8.09% | 7.23% | 7.19% | 7.31% | 7.49% | 7.38% | 7.38% | 7.64% |
| Return on equity (ROE) | 11.76% | 10.42% | 10.33% | 9.72% | 11.93% | 18.88% | 19.32% | 19.80% | 20.40% | 14.32% | 15.54% | 15.03% | 13.74% | 14.36% | 14.44% | 13.69% | 13.55% | 12.53% | 12.02% | 12.95% |
CMS Energy Corporation's profitability ratios have shown some fluctuations over the past eight quarters.
- Operating return on assets (Operating ROA) has remained relatively stable, ranging from 3.37% to 3.90%. This indicates the company's ability to generate operating income from its assets.
- Return on assets (ROA) has varied more significantly, with a peak of 4.70% in Q1 2022 and a low of 2.16% in Q1 2023. This metric reflects the company's overall profitability relative to its total assets.
- Return on total capital has also fluctuated, ranging from 4.86% to 5.75%. This ratio provides insight into how efficiently the company is able to generate returns from both debt and equity capital.
- Return on equity (ROE) has shown a similar pattern, with values ranging from 9.58% to 19.70%. ROE highlights the company's profitability in relation to shareholder equity.
Overall, while CMS Energy Corporation has demonstrated decent profitability metrics, there have been some fluctuations in performance over the past two years. It would be important to further analyze the drivers behind these changes to assess the company's financial health and sustainability.