CMS Energy Corporation (CMS)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,487,000 | 1,677,000 | 1,449,000 | 1,948,000 | 1,375,000 |
| Long-term debt | US$ in thousands | 15,194,000 | 14,508,000 | 13,122,000 | 12,046,000 | 11,744,000 |
| Total stockholders’ equity | US$ in thousands | 8,230,000 | 7,544,000 | 7,015,000 | 6,631,000 | 5,496,000 |
| Return on total capital | 6.35% | 7.60% | 7.20% | 10.43% | 7.98% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,487,000K ÷ ($15,194,000K + $8,230,000K)
= 6.35%
The return on total capital for CMS Energy Corporation has shown fluctuations over the years. In December 2020, the return on total capital was 7.98%, which increased to 10.43% by December 2021, signaling improved capital efficiency. However, the return decreased to 7.20% by December 2022, followed by a slight increase to 7.60% by December 2023. In December 2024, there was a decline to 6.35%, indicating a decrease in the company's ability to generate returns from its total capital. Overall, the trend in the return on total capital for CMS Energy Corporation has been somewhat mixed, indicating varying levels of capital utilization and efficiency over the years.
Peer comparison
Dec 31, 2024