CMS Energy Corporation (CMS)
Debt-to-equity 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-equity ratio | 1.92 | 1.87 | 1.82 | 2.14 | 2.38 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $14,508,000K ÷ $7,544,000K
= 1.92
The debt-to-equity ratio of CMS Energy Corporation has exhibited fluctuation over the past five years. The ratio increased from 2.64 in 2019 to 2.76 in 2020, indicating a higher reliance on debt to finance its operations relative to shareholders' equity. However, there was a decrease in the ratio to 1.88 in 2021, suggesting a reduction in the company's debt relative to equity.
Subsequently, the ratio increased in 2022 and 2023 to 2.04 and 2.07, respectively. While these values are higher than in 2021, they are lower than the levels seen in 2020, signifying that the company may be managing its debt levels more effectively.
Overall, the trend in the debt-to-equity ratio of CMS Energy Corporation implies that the company has experienced varying levels of leverage in its capital structure over the observed period. Investors and stakeholders may monitor these fluctuations to assess the company's financial risk and capital management strategies.
Peer comparison
Dec 31, 2023