CMS Energy Corporation (CMS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 35,920,000 | 33,517,000 | 31,353,000 | 28,753,000 | 29,666,000 |
| Total stockholders’ equity | US$ in thousands | 8,230,000 | 7,544,000 | 7,015,000 | 6,631,000 | 5,496,000 |
| Financial leverage ratio | 4.36 | 4.44 | 4.47 | 4.34 | 5.40 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $35,920,000K ÷ $8,230,000K
= 4.36
The financial leverage ratio of CMS Energy Corporation has shown a declining trend over the past few years, decreasing from 5.40 in December 2020 to 4.36 in December 2024. This indicates that the company's reliance on debt financing relative to its equity has decreased. The downward trend may suggest that the company is becoming less leveraged and potentially more financially stable. However, a financial leverage ratio of 4.36 still signifies that a significant portion of CMS Energy's assets are funded by debt, which may pose risks during economic downturns or interest rate fluctuations. Monitoring this ratio over time can provide insights into the company's capital structure and financial risk management.
Peer comparison
Dec 31, 2024