CMS Energy Corporation (CMS)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 887,000 | 837,000 | 1,353,000 | 755,000 | 680,000 |
| Total stockholders’ equity | US$ in thousands | 7,544,000 | 7,015,000 | 6,631,000 | 5,496,000 | 5,018,000 |
| ROE | 11.76% | 11.93% | 20.40% | 13.74% | 13.55% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $887,000K ÷ $7,544,000K
= 11.76%
CMS Energy Corporation's return on equity (ROE) has shown some fluctuation over the past five years. The ROE decreased from 13.55% in 2019 to 13.74% in 2020 and then further declined to 20.33% in 2021. However, there was a significant drop in ROE to 11.79% in 2022 and a slight decrease to 11.63% in 2023.
The trend indicates that CMS Energy Corporation's ability to generate profit from shareholders' equity has been somewhat inconsistent in recent years. This could be due to various factors such as changes in financial performance, capital structure, or overall market conditions.
Further analysis would be needed to understand the underlying reasons for these fluctuations in ROE and to assess the company's overall financial health and performance. Investors and stakeholders may want to delve deeper into the company's financial statements and operations to gain a comprehensive understanding of its return on equity dynamics.
Peer comparison
Dec 31, 2023