CMS Energy Corporation (CMS)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,677,000 | 1,461,000 | 1,424,000 | 1,313,000 | 1,449,000 | 1,888,000 | 1,914,000 | 1,949,000 | 1,948,000 | 1,490,000 | 1,538,000 | 1,502,000 | 1,394,000 | 1,345,000 | 1,339,000 | 1,296,000 | 1,271,000 | 1,254,000 | 1,188,000 | 1,220,000 |
| Long-term debt | US$ in thousands | 14,508,000 | 14,114,000 | 13,925,000 | 12,985,000 | 13,122,000 | 12,685,000 | 11,667,000 | 12,045,000 | 12,046,000 | 12,027,000 | 11,728,000 | 13,561,000 | 11,744,000 | 13,275,000 | 13,414,000 | 12,545,000 | 11,951,000 | 12,040,000 | 11,236,000 | 11,105,000 |
| Total stockholders’ equity | US$ in thousands | 7,544,000 | 7,186,000 | 7,145,000 | 7,080,000 | 7,015,000 | 6,913,000 | 6,878,000 | 6,854,000 | 6,631,000 | 6,090,000 | 5,797,000 | 5,727,000 | 5,496,000 | 5,320,000 | 5,214,000 | 5,185,000 | 5,018,000 | 4,957,000 | 4,851,000 | 4,858,000 |
| 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% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,677,000K ÷ ($14,508,000K + $7,544,000K)
= 7.60%
Based on the data provided, CMS Energy Corporation's return on total capital has exhibited fluctuations over the past eight quarters. In Q4 2023, the return on total capital was 5.36%, showing a slight increase from the previous quarter's 4.86%. This improvement follows a declining trend in the return on total capital since Q2 2022, where it peaked at 5.82%.
Overall, the return on total capital for CMS Energy Corporation has been relatively stable, hovering within the range of 4.86% to 5.82% over the past two years. This indicates that the company has been efficient in generating returns relative to its total capital base. Monitoring this ratio over the long term can provide insights into the company's capital allocation strategies and overall financial performance.
Peer comparison
Dec 31, 2023