Clearway Energy Inc Class C (CWEN)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 46.63 | 42.44 | 39.44 | 29.94 | 41.89 |
| Days of sales outstanding (DSO) | days | — | — | 46.93 | 40.87 | 43.53 |
| Number of days of payables | days | — | 100.32 | 46.15 | 59.89 | 71.80 |
| Cash conversion cycle | days | 46.63 | -57.88 | 40.22 | 10.93 | 13.61 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 46.63 + — – —
= 46.63
Clearway Energy Inc Class C's cash conversion cycle indicates the efficiency of its cash management over the years. The cycle decreased from 13.61 days in 2020 to 10.93 days in 2021, suggesting improved effectiveness in converting its investments in raw materials into cash.
However, there was a substantial increase to 40.22 days in 2022, indicating a longer time taken to convert its investments into cash. This increase may be due to operational inefficiencies or changes in the company's working capital management.
The negative cash conversion cycle of -57.88 days in 2023 is unusual and may suggest that Clearway Energy Inc Class C is receiving cash from customers before it needs to pay its suppliers. This may be advantageous in terms of cash flows and liquidity management.
In 2024, the cycle increased significantly to 46.63 days, indicating a longer time taken to convert investments into cash compared to the previous year. This increase may be a result of various factors affecting the company's operations or market conditions.
In conclusion, Clearway Energy Inc Class C's cash conversion cycle has shown fluctuations over the years, highlighting the importance of closely monitoring working capital management to ensure efficient cash flow operations.
Peer comparison
Dec 31, 2024