CMS Energy Corporation (CMS)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		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	0.70	0.71	0.70	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 of CMS Energy Corporation has remained relatively stable over the past eight quarters, ranging from 0.64 to 0.68. This indicates that the company's proportion of debt to its total capital has been consistent, hovering around the two-thirds mark. Generally, a higher debt-to-capital ratio suggests a higher level of financial leverage and risk, as more of the company's operations are funded by debt rather than through equity. In this case, the company's ratio has remained within a moderate range, suggesting a balanced approach to financing its operations. However, it is essential for investors and stakeholders to monitor any significant changes in this ratio over time to assess the company's long-term financial health and risk profile.