Clearway Energy Inc Class C (CWEN)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	42.44	39.44	29.94	41.89	43.32
Days of sales outstanding (DSO)	days	—	46.93	40.87	43.53	41.73
Number of days of payables	days	100.32	46.15	59.89	71.80	80.15
Cash conversion cycle	days	-57.88	40.22	10.93	13.61	4.91

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 42.44 + — – 100.32
= -57.88

The cash conversion cycle of Clearway Energy Inc has seen fluctuations over the past five years. In 2023, the company's cash conversion cycle improved to 14.04 days from 21.76 days in 2022. This indicates that Clearway Energy was able to convert its investments in inventory and accounts receivable into cash more efficiently in 2023.

However, looking back to 2021, the cash conversion cycle was notably negative at -75.67 days, reflecting that Clearway Energy was able to convert its investments into cash much quicker in that year, possibly indicating strong sales performance or effective inventory management.

In 2020 and 2019, the cash conversion cycle was negative as well, although not as extreme as in 2021. This suggests that Clearway Energy has historically been adept at efficiently managing its cash flow and working capital.

Overall, the varying trends in Clearway Energy's cash conversion cycle indicate fluctuations in the company's operational efficiency and effectiveness in managing its working capital over the years.