CMS Energy Corporation (CMS)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 15,194,000 | 14,508,000 | 13,122,000 | 12,046,000 | 11,744,000 |
| Total stockholders’ equity | US$ in thousands | 8,230,000 | 7,544,000 | 7,015,000 | 6,631,000 | 5,496,000 |
| Debt-to-equity ratio | 1.85 | 1.92 | 1.87 | 1.82 | 2.14 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $15,194,000K ÷ $8,230,000K
= 1.85
The debt-to-equity ratio of CMS Energy Corporation has shown a downward trend over the past five years. As of December 31, 2020, the ratio was 2.14, indicating that the company had higher levels of debt relative to equity. However, this ratio has since improved, with the ratio decreasing to 1.82 as of December 31, 2021. This downward trend continued through 2022 and 2024 with the ratios of 1.87, 1.92, and 1.85 respectively.
A decreasing debt-to-equity ratio generally signifies that the company is relying less on debt financing and becoming more reliant on equity financing, which can be a positive sign for investors as it indicates improved financial stability and lower financial risk. However, it is important to note that the ideal debt-to-equity ratio can vary by industry and the company's specific circumstances. Further analysis of the company's financial health and operational performance would be beneficial to gain a more comprehensive understanding of CMS Energy Corporation's financial position.
Peer comparison
Dec 31, 2024