Consumers Energy Cash And Equivalents vs. Debt To Equity

CMS-PB Preferred Stock  USD 79.75  0.06  0.08%   
Based on the key profitability measurements obtained from Consumers Energy's financial statements, Consumers Energy may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Consumers Energy's ability to earn profits and add value for shareholders.
For Consumers Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Consumers Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Consumers Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Consumers Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Consumers Energy over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Consumers Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Consumers Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Consumers Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Consumers Energy Debt To Equity vs. Cash And Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Consumers Energy's current stock value. Our valuation model uses many indicators to compare Consumers Energy value to that of its competitors to determine the firm's financial worth.
Consumers Energy is number one stock in cash and equivalents category among its peers. It also is number one stock in debt to equity category among its peers . The ratio of Cash And Equivalents to Debt To Equity for Consumers Energy is about  2,229,807 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Consumers Energy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Consumers Energy's Preferred Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Consumers Debt To Equity vs. Cash And Equivalents

Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Consumers Energy

Cash

 = 

Bank Deposits

+

Liquidities

 = 
196 M
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.

Consumers Energy

D/E

 = 

Total Debt

Total Equity

 = 
87.90 %
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.

Consumers Debt To Equity Comparison

Consumers Energy is currently under evaluation in debt to equity category among its peers.

Consumers Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Consumers Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Consumers Energy will eventually generate negative long term returns. The profitability progress is the general direction of Consumers Energy's change in net profit over the period of time. It can combine multiple indicators of Consumers Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Consumers Energy Company operates as an electric and gas utility in Michigan. Consumers Energy Company is a subsidiary of CMS Energy Corporation. CMS Energy operates under Utilities - Regulated Electric classification in USA and is traded on New York Stock Exchange. It employs 7504 people.

Consumers Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Consumers Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Consumers Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Consumers Energy's important profitability drivers and their relationship over time.

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Our tools can tell you how much better you can do entering a position in Consumers Energy without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Use Investing Themes to Complement your Consumers Energy position

In addition to having Consumers Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Companies providing wireless technology and communication services. The Wireless theme has 43 constituents at this time.
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Other Information on Investing in Consumers Preferred Stock

To fully project Consumers Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Consumers Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Consumers Energy's income statement, its balance sheet, and the statement of cash flows.
Potential Consumers Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Consumers Energy investors may work on each financial statement separately, they are all related. The changes in Consumers Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Consumers Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.