Clearway Energy Inc Class C (CWEN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,314,000 | 1,190,000 | 1,286,000 | 1,199,000 | 1,032,000 |
| Property, plant and equipment | US$ in thousands | 9,526,000 | 7,421,000 | 7,650,000 | 7,217,000 | 6,063,000 |
| Fixed asset turnover | 0.14 | 0.16 | 0.17 | 0.17 | 0.17 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,314,000K ÷ $9,526,000K
= 0.14
The fixed asset turnover ratio for Clearway Energy Inc has been gradually decreasing over the past five years. In 2019, the ratio stood at 0.17, remaining constant in 2020 and 2021, before declining to 0.16 in 2022, and further decreasing to 0.14 in 2023.
This decreasing trend indicates that Clearway Energy Inc is generating less revenue relative to its fixed assets over time. It suggests that the company might be facing challenges in efficiently utilizing its fixed assets to generate sales. This could potentially be attributed to a variety of factors, such as underutilization of assets, increasing depreciation costs, or declining sales volume.
It is crucial for the company to closely monitor and improve its fixed asset turnover ratio to ensure optimal utilization of its fixed assets and enhance overall operational efficiency. Additionally, management should consider implementing strategies to boost revenue generation from existing fixed assets or evaluating the necessity of additional investments in fixed assets.
Peer comparison
Dec 31, 2023