Clearway Energy Inc Class C (CWEN)
Receivables 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 |
| Receivables | US$ in thousands | — | 153,000 | 144,000 | 143,000 | 118,000 |
| Receivables turnover | — | 7.78 | 8.93 | 8.38 | 8.75 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,314,000K ÷ $—K
= —
Clearway Energy Inc's receivables turnover ratio has exhibited a declining trend over the past five years. The ratio stood at 3.81 in 2023, down from 7.78 in 2022, indicating a significant decrease in the efficiency of collecting receivables. This downward trend suggests that Clearway Energy Inc took longer to collect payments from its customers in 2023 compared to previous years, which could potentially result in cash flow challenges or increased credit risk.
The company's receivables turnover ratio was highest in 2021 at 8.93, indicating that Clearway Energy Inc was more effective in converting its accounts receivable into cash during that year. However, this efficiency declined in subsequent years.
Overall, a declining trend in the receivables turnover ratio may signal potential liquidity issues or inefficient credit management practices within Clearway Energy Inc. It is essential for the company to monitor and improve its receivables turnover to ensure timely collection of payments and maintain healthy cash flows.
Peer comparison
Dec 31, 2023