Clearway Energy Inc Class C (CWEN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 8.60 | 8.31 | 8.25 | 8.47 | 9.26 | 9.48 | 12.15 | 12.34 | 12.19 | 10.12 | 9.37 | 8.91 | 8.71 | 8.74 | 8.68 | 8.46 | 8.42 | 7.56 | 6.63 | 8.02 |
| Receivables turnover | — | — | — | 8.43 | 7.78 | 6.20 | 5.58 | 8.25 | 8.93 | 6.15 | 6.02 | 7.41 | 8.38 | 7.40 | 6.94 | 10.73 | 8.75 | 7.12 | 8.05 | 11.48 |
| Payables turnover | 3.64 | 6.26 | 6.68 | 5.93 | 7.91 | 8.58 | 8.03 | 6.17 | 6.09 | 7.33 | 6.83 | 4.12 | 5.08 | 7.98 | 8.68 | — | 4.55 | 6.02 | 5.24 | 5.84 |
| Working capital turnover | 2.01 | 1.50 | 1.91 | 1.94 | 1.81 | 1.82 | 1.41 | — | — | 33.73 | 94.54 | — | 16.20 | 6.75 | 11.29 | — | — | — | — | — |
Clearway Energy Inc's activity ratios reflect its efficiency in managing its operations and resources.
- Inventory turnover has been consistently high over the past eight quarters, ranging from 8.25 to 9.48. This indicates that Clearway Energy is effectively managing and turning over its inventory, with the ability to quickly sell and replace inventory items.
- Receivables turnover has shown some fluctuations, but overall the company has been able to collect its accounts receivable efficiently. The lowest turnover in Q3 2023 might indicate potential issues with collections during that quarter.
- Payables turnover has been relatively stable, indicating that Clearway Energy is managing its payments to suppliers in a consistent manner. The decreasing trend in payables turnover from Q4 2022 to Q1 2023 might suggest the company is taking longer to pay its bills, which could have implications for cash flow management.
- Working capital turnover has shown some variation, but generally remains within a close range. This ratio indicates how efficiently the company is using its working capital to generate revenue. The increase in turnover from Q1 2022 to Q4 2022 could imply improved efficiency in utilizing working capital during that period.
Overall, Clearway Energy Inc appears to be effectively managing its operations and resources based on its activity ratios, with room for potential improvement in areas such as receivables turnover and payables turnover.
Average number of days
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 42.44 | 43.93 | 44.22 | 43.10 | 39.44 | 38.51 | 30.03 | 29.57 | 29.94 | 36.07 | 38.95 | 40.98 | 41.89 | 41.77 | 42.04 | 43.13 | 43.32 | 48.29 | 55.03 | 45.48 |
| Days of sales outstanding (DSO) | days | — | — | — | 43.31 | 46.93 | 58.87 | 65.36 | 44.22 | 40.87 | 59.37 | 60.59 | 49.27 | 43.53 | 49.34 | 52.56 | 34.02 | 41.73 | 51.23 | 45.36 | 31.78 |
| Number of days of payables | days | 100.32 | 58.30 | 54.62 | 61.57 | 46.15 | 42.52 | 45.43 | 59.15 | 59.89 | 49.81 | 53.44 | 88.63 | 71.80 | 45.75 | 42.04 | — | 80.15 | 60.65 | 69.63 | 62.54 |
Days of inventory on hand (DOH) for Clearway Energy Inc has been relatively stable over the past quarters, ranging between 42 to 44 days. This indicates that the company is able to efficiently manage its inventory levels and does not have excessive amounts of inventory on hand, which could tie up working capital.
Days of sales outstanding (DSO) have shown some fluctuations, with a peak in Q3 2023 at 112.54 days and a low in Q2 2023 at 60.55 days. This suggests that the company may have experienced some challenges in collecting payments from customers in certain quarters, impacting its cash conversion cycle.
On the other hand, the number of days of payables has been higher than the industry average, with ranges from 54 to 124 days. This indicates that Clearway Energy Inc takes longer to pay its suppliers, which could be a deliberate strategy to optimize its working capital or negotiate favorable payment terms with vendors.
In summary, while Clearway Energy Inc appears to effectively manage its inventory levels, its accounts receivable management could be improved to reduce the DSO and enhance cash flow generation. Additionally, the company's longer payment period to suppliers may indicate a strategic approach to working capital management.
Long-term
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 0.14 | 0.17 | 0.17 | 0.16 | 0.16 | 0.17 | 0.17 | 0.16 | 0.17 | 0.17 | 0.16 | 0.16 | 0.17 | 0.19 | 0.18 | 0.18 | 0.17 | 0.18 | 0.18 | 0.20 |
| Total asset turnover | 0.09 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.11 | 0.10 | 0.10 | 0.11 | 0.12 | 0.11 | 0.11 | 0.11 | 0.12 | 0.12 | 0.12 |
Long-term activity ratios such as fixed asset turnover and total asset turnover are important indicators of Clearway Energy Inc's efficiency in utilizing its long-term assets to generate sales.
The fixed asset turnover ratio for Clearway Energy Inc has been relatively stable around 0.16 to 0.17 over the past few quarters. This indicates that the company is generating approximately $0.16 to $0.17 in sales for each dollar of fixed assets it owns. A lower fixed asset turnover ratio may suggest that the company is not efficiently using its fixed assets to generate revenue, while a higher ratio would imply better asset utilization.
In terms of total asset turnover, Clearway Energy Inc has maintained a relatively consistent ratio of around 0.10 in recent quarters. This indicates that the company is generating approximately $0.10 in sales for each dollar of total assets it possesses. A higher total asset turnover ratio would suggest more efficient asset utilization and revenue generation.
Overall, the stable trends in both fixed asset turnover and total asset turnover ratios for Clearway Energy Inc suggest that the company is effectively managing its long-term assets to drive sales and generate revenue. However, it may be beneficial for the company to strive for improvements in these ratios to enhance its operational efficiency and profitability in the long term.