Clearway Energy Inc Class C (CWEN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		—	7.78	8.93	8.38	8.75
DSO	days	—	46.93	40.87	43.53	41.73

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

The Days Sales Outstanding (DSO) ratio for Clearway Energy Inc has shown fluctuations over the past five years. In 2023, the DSO increased significantly to 95.83 days from 46.93 days in 2022. This indicates that it took Clearway Energy Inc approximately 95.83 days to collect its accounts receivable in 2023, which is a considerable extension compared to the previous year.

Comparing the DSO ratios from 2021 to 2023, there is a clear increasing trend, signifying a potential difficulty in collecting accounts receivable efficiently. This could raise concerns about the company's liquidity and cash flow management, as a higher DSO implies a longer time to convert sales into cash.

On the positive side, Clearway Energy Inc's DSO in 2023 is still lower compared to 2020 and 2019, suggesting some improvement in receivables management efficiency over the longer term. However, the recent sharp increase in DSO warrants further investigation into the company's credit policies, collection practices, and overall financial health to ensure sustainable operations and cash flow management in the future.