Allowance for credit losses
CMS Energy Allowance for credit losses decreased by 40.7% to $16.00M in Q4 2025 compared to the prior quarter. Year-over-year, this metric declined by 40.7%, from $27.00M to $16.00M. Over 5 years (FY 2020 to FY 2025), Allowance for credit losses shows a downward trend with a -23.7% CAGR. This is a positive signal — lower values indicate better performance for this metric.
Analysis
How to read this metric
An increase suggests higher expected defaults or a more conservative risk assessment, while a decrease suggests improved borrower creditworthiness.
Detailed definition
A contra-asset account representing the estimated amount of uncollectible loans and receivables within the company's len...
Peer comparison
Standard for financial institutions; peers with higher-risk loan portfolios will typically maintain higher allowance ratios.
bank_allowance_for_credit_lossesHistorical Data
| Q4 '21 | Q4 '22 | Q4 '23 | Q4 '24 | Q4 '25 | |
|---|---|---|---|---|---|
| Value | $32.00M | $35.00M | $28.00M | $27.00M | $16.00M |
| QoQ Change | — | +9.4% | -20.0% | -3.6% | -40.7% |
| YoY Change | — | +9.4% | -20.0% | -3.6% | -40.7% |
Allowance for credit losses at Other Companies
Frequently Asked Questions
- What is CMS Energy's allowance for credit losses?
- CMS Energy (CMS) reported allowance for credit losses of $16.00M in Q4 2025.
- How has CMS Energy's allowance for credit losses changed year-over-year?
- CMS Energy's allowance for credit losses decreased by 40.7% year-over-year, from $27.00M to $16.00M.
- What is the long-term trend for CMS Energy's allowance for credit losses?
- Over 5 years (2020 to 2025), CMS Energy's allowance for credit losses has grown at a -23.7% compound annual growth rate (CAGR), from $62.00M to $16.00M.
- What does allowance for credit losses mean?
- The reserve set aside to cover potential losses from loans that may not be repaid.