Clearway Energy Inc Class C (CWEN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 7.83 | 8.60 | 9.26 | 12.19 | 8.71 |
| Receivables turnover | — | — | 7.78 | 8.93 | 8.38 |
| Payables turnover | — | 3.64 | 7.91 | 6.09 | 5.08 |
| Working capital turnover | 3.93 | 2.01 | 1.81 | — | 16.20 |
Clearway Energy Inc Class C has shown improvement in its Inventory turnover ratio from 8.71 in 2020 to 12.19 in 2021, indicating the company is selling its inventory more efficiently. However, there was a slight decline in 2024 to 7.83, which may suggest a slower rate of inventory turnover.
The Receivables turnover ratio has been relatively stable, ranging from 8.38 in 2020 to 8.93 in 2021. However, data for 2023 and 2024 is missing. This ratio measures how efficiently the company is collecting payments from its customers.
The Payables turnover ratio has shown an increasing trend from 5.08 in 2020 to 7.91 in 2022, indicating the company is taking longer to pay its suppliers. However, there was a significant drop in 2023 to 3.64. The missing data for 2024 makes it difficult to assess the trend for this ratio.
The Working capital turnover ratio was highest in 2020 at 16.20, indicating that the company was generating revenue efficiently relative to its working capital. However, data is missing for 2021, making it hard to assess the trend in subsequent years. In 2022, there was a significant decrease in this ratio, but it improved in 2023 and 2024 to 2.01 and 3.93, respectively.
Overall, Clearway Energy Inc Class C's activity ratios reflect mixed performance in managing its inventory, receivables, payables, and working capital efficiently over the years analyzed.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 46.63 | 42.44 | 39.44 | 29.94 | 41.89 |
| Days of sales outstanding (DSO) | days | — | — | 46.93 | 40.87 | 43.53 |
| Number of days of payables | days | — | 100.32 | 46.15 | 59.89 | 71.80 |
To analyze Clearway Energy Inc Class C's activity ratios, we will focus on three key metrics:
1. Days of Inventory on Hand (DOH):
- The trend in DOH indicates how efficiently the company manages its inventory. A decrease in DOH from 41.89 days in 2020 to 29.94 days in 2021 suggests inventory turnover has improved. However, the increase to 46.63 days in 2024 signals a less efficient inventory management approach.
2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes for the company to collect revenue after making a sale. The decline in DSO from 43.53 days in 2020 to 40.87 days in 2021 reflects faster collection of receivables. However, the data missing for 2023 and 2024 hinders a comprehensive assessment of collection efficiency.
3. Number of Days of Payables:
- This metric reveals how long the company takes to pay its suppliers. The significant decrease in days of payables from 71.80 days in 2020 to 46.15 days in 2022 indicates Clearway Energy Inc Class C is paying its suppliers more promptly. The spike to 100.32 days in 2023 suggests a potential liquidity management strategy, but data is unavailable for 2024 to assess further trends.
In summary, Clearway Energy Inc Class C has shown improvements in managing inventory and collection efficiency, but a detailed assessment of payables management requires additional data. Monitoring these activity ratios can help assess the company's operational efficiency and working capital management over time.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.14 | 0.14 | 0.16 | 0.17 | 0.17 |
| Total asset turnover | 0.10 | 0.09 | 0.10 | 0.10 | 0.11 |
The long-term activity ratios of Clearway Energy Inc Class C indicate the efficiency of the company in utilizing its assets over a period of time.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio remained relatively stable over the years, ranging from 0.16 to 0.17. This indicates that Clearway Energy Inc Class C generated approximately $0.16 to $0.17 in revenue for every dollar invested in fixed assets.
- A decreasing trend can be observed in the fixed asset turnover ratio from 2022 to 2024, suggesting a potential decrease in efficiency in generating sales from fixed assets.
2. Total Asset Turnover:
- The total asset turnover ratio fluctuated between 0.09 and 0.11 during the period under review. This implies that Clearway Energy Inc Class C generated sales equivalent to approximately $0.09 to $0.11 for each dollar of total assets.
- The slight variance in the total asset turnover ratio indicates the company's ability to efficiently utilize its total assets to generate revenue.
In summary, the fixed asset turnover and total asset turnover ratios of Clearway Energy Inc Class C demonstrate the company's ability to generate revenue relative to its investments in fixed assets and total assets. The stability of these ratios suggests a consistent performance in asset utilization, albeit with a slight decline in efficiency in recent years.