Clearway Energy Inc Class C (CWEN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 8.60 | 9.26 | 12.19 | 8.71 | 8.42 |
| Receivables turnover | — | 7.78 | 8.93 | 8.38 | 8.75 |
| Payables turnover | 3.64 | 7.91 | 6.09 | 5.08 | 4.55 |
| Working capital turnover | 2.01 | 1.81 | — | 16.20 | — |
The inventory turnover ratio for Clearway Energy Inc has shown a decreasing trend over the past five years, with a notable peak in 2021. This ratio indicates that the company is efficiently managing its inventory as it measures how many times the company sells and replaces its inventory within a specific period.
In contrast, the receivables turnover ratio has been fluctuating over the years, with a significant decrease in 2023 compared to the previous year. This ratio reflects the effectiveness of the company in collecting payments from its customers. A higher turnover indicates a more efficient collection process.
The payables turnover ratio has also exhibited fluctuations, with a peak in 2022 followed by a decrease in subsequent years. This ratio signifies how many times a company pays off its suppliers during a particular period. A higher turnover ratio can indicate that the company is efficiently managing its payables.
The working capital turnover ratio, which indicates how effectively a company is utilizing its working capital to generate revenue, has only been reported for three out of the past five years. In 2020, the company demonstrated exceptionally high turnover, suggesting a significant utilization of working capital to generate revenue.
Overall, Clearway Energy Inc's activity ratios portray mixed performance trends over the years, reflecting varying levels of efficiency in managing inventory, receivables, payables, and working capital turnover. Further analysis and comparison with industry benchmarks may provide additional insights into the company's operational efficiency and effectiveness.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 42.44 | 39.44 | 29.94 | 41.89 | 43.32 |
| Days of sales outstanding (DSO) | days | — | 46.93 | 40.87 | 43.53 | 41.73 |
| Number of days of payables | days | 100.32 | 46.15 | 59.89 | 71.80 | 80.15 |
Days of inventory on hand (DOH) have been steadily increasing over the past five years, reaching 42.44 days at the end of 2023. This indicates that Clearway Energy Inc is holding onto inventory for a longer period before selling it.
Days of sales outstanding (DSO) showed a significant increase from 2022 to 2023, more than doubling to 95.83 days. This may suggest that Clearway Energy Inc is taking longer to collect payments from customers, which could potentially impact cash flow.
The number of days of payables has also fluctuated over the years, with a significant increase in 2021 followed by a decrease in 2022, and another increase in 2023 to 124.24 days. This indicates that Clearway Energy Inc is taking longer to pay its suppliers and creditors, potentially affecting its relationships with them.
Overall, the activity ratios suggest that Clearway Energy Inc may need to review its inventory management, accounts receivable collection policies, and payables management to improve efficiency and optimize cash flow.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.14 | 0.16 | 0.17 | 0.17 | 0.17 |
| Total asset turnover | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 |
Clearway Energy Inc's long-term activity ratios for fixed asset turnover and total asset turnover have shown a slight decline over the past five years.
The fixed asset turnover ratio has decreased from 0.17 in 2019 to 0.14 in 2023, indicating that the company is generating less revenue for each dollar invested in fixed assets. This could suggest potential inefficiencies in asset utilization or a decrease in the productivity of the company's fixed assets over time.
Similarly, the total asset turnover ratio has decreased from 0.11 in 2019 to 0.09 in 2023, implying that Clearway Energy Inc is generating less revenue for each dollar of total assets. This decline may be attributed to various factors such as decreased sales or ineffective utilization of the company's total assets.
Overall, the decreasing trend in both fixed asset turnover and total asset turnover ratios suggests that Clearway Energy Inc should focus on improving the efficiency of its asset utilization to enhance revenue generation and operational effectiveness in the long term.