CMS Energy Corporation (CMS)

Debt-to-capital ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	15,194,000	15,548,000	14,917,000	14,973,000	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
Total stockholders’ equity	US$ in thousands	8,230,000	8,111,000	8,003,000	7,946,000	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
Debt-to-capital ratio		0.65	0.66	0.65	0.65	0.66	0.66	0.66	0.65	0.65	0.65	0.63	0.64	0.64	0.66	0.67	0.70	0.68	0.71	0.72	0.71

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $15,194,000K ÷ ($15,194,000K + $8,230,000K)
= 0.65

The debt-to-capital ratio of CMS Energy Corporation has shown a relatively stable trend over the past few years, hovering around the range of 0.63 to 0.72. This ratio indicates that the company's debt accounts for approximately 64% to 72% of its total capital structure, with the remainder being funded by equity.

A decreasing trend in the debt-to-capital ratio from 2020 to 2024 suggests that CMS Energy has been gradually reducing its debt relative to its total capital, which can be a positive sign for investors and creditors. This may indicate a strengthening financial position and improved debt management strategies.

However, it is essential to consider the industry norms and compare CMS Energy's debt-to-capital ratio with its competitors to gain a better understanding of its leverage position and assess its financial health accurately.