Clearway Energy Inc Class C (CWEN)

Cash conversion cycle

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 46.63 46.83 44.69 43.12 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
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
Number of days of payables days — — — 91.44 100.32 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 —
Cash conversion cycle days 46.63 46.83 44.69 -48.32 -57.88 -14.38 -10.40 24.84 40.22 54.86 49.95 14.64 10.93 45.63 46.09 1.62 13.61 45.36 52.56 77.14

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 has shown fluctuating trends over the past few years. The company's cash conversion cycle measures the time it takes for Clearway Energy to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to December 31, 2022, Clearway Energy's cash conversion cycle ranged from a high of 77.14 days to a low of 1.62 days. A decreasing trend was observed from 2020 to 2021, indicating an improvement in the efficiency of Clearway Energy's operations. However, there was a sudden increase in the cash conversion cycle in June 2022, reaching 49.95 days, and fluctuating values continued until September 30, 2022.

Interestingly, from March 31, 2023, to December 31, 2024, Clearway Energy's cash conversion cycle took a significant turn, showing negative values. This can often indicate that the company is efficiently managing its working capital, potentially collecting cash from sales before paying suppliers for inventory.

Overall, while there have been fluctuations and periods of inefficiency in Clearway Energy Inc Class C's cash conversion cycle, the recent negative values suggest potential improvements in the management of working capital which could positively impact the company's cash flow and liquidity in the future.