Debt-to-Equity Ratio

The debt-to-equity ratio measures how much debt a company uses to finance its operations compared to shareholders' equity — a ratio of 1.99x means CMS has nearly twice as much debt as equity.

This is well above the sector median of 0.73x, placing CMS in the 85th percentile among its peers, indicating a much higher reliance on debt than most similar companies. Trend data is limited: the year-over-year change is not available, but the quarter-over-quarter change shows a 1.5% decline from 2.02x to 1.99x. Although the ratio remains elevated, the slight downward move suggests the company may be gradually reducing its debt burden, lowering near-term risk. The combination of a high level and a modestly improving trend implies that leverage is a key risk factor, but one that is being managed. This mixed picture supports the overall NEUTRAL verdict — the elevated ratio is a concern, but the small improvement prevents it from being clearly negative.

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