CMS Energy Corporation (CMS)

Financial leverage 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
Total assets	US$ in thousands	33,517,000	32,513,000	32,265,000	31,386,000	31,353,000	30,372,000	29,040,000	28,740,000	28,753,000	30,513,000	29,953,000	29,723,000	29,666,000	29,280,000	28,581,000	27,447,000	26,837,000	26,009,000	25,292,000	24,793,000
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
Financial leverage ratio		4.44	4.52	4.52	4.43	4.47	4.39	4.22	4.19	4.34	5.01	5.17	5.19	5.40	5.50	5.48	5.29	5.35	5.25	5.21	5.10

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $33,517,000K ÷ $7,544,000K
= 4.44

The financial leverage ratio of CMS Energy Corporation has shown some fluctuation over the past eight quarters, ranging from 4.19 to 4.52. The ratio measures the extent to which the company relies on debt to finance its operations and investments. A higher ratio indicates a higher level of debt relative to equity in the company's capital structure.

The company's financial leverage ratio has generally been above 4, indicating that CMS Energy Corporation relies more on debt financing than equity. The slight fluctuations in the ratio over the quarters suggest some variability in the company's capital structure and debt management strategies.

Overall, it is important for investors and stakeholders to monitor the financial leverage ratio to assess the company's risk levels and ability to meet its debt obligations, as a high ratio may indicate increased financial risk and potential challenges in servicing debt.