CMS Energy Corporation (CMS)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 14,508,000 | 13,122,000 | 12,046,000 | 11,744,000 | 11,951,000 |
| Total stockholders’ equity | US$ in thousands | 7,544,000 | 7,015,000 | 6,631,000 | 5,496,000 | 5,018,000 |
| Debt-to-capital ratio | 0.66 | 0.65 | 0.64 | 0.68 | 0.70 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $14,508,000K ÷ ($14,508,000K + $7,544,000K)
= 0.66
The debt-to-capital ratio for CMS Energy Corporation has been relatively stable over the past five years, ranging between 0.65 and 0.73. This ratio indicates that, on average, approximately 67% of CMS Energy's capital structure is financed through debt.
The consistent levels of the debt-to-capital ratio suggest that CMS Energy has maintained a balanced mix of debt and equity in its capital structure. A ratio around 0.67 signifies that the company relies moderately on debt financing while also having a significant portion of equity financing.
Overall, the stability of the debt-to-capital ratio indicates that CMS Energy has managed its debt levels effectively over the years, maintaining a balanced approach to funding its operations and investments.
Peer comparison
Dec 31, 2023