Clearway Energy Inc Class C (CWEN)

Cash conversion cycle

		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
Cash conversion cycle	days	-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	4.91	38.87	30.76	14.73

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 shown fluctuations over the past eight quarters. In Q4 2023, the company had a relatively efficient cash conversion cycle of 14.04 days, indicating that it takes approximately 14 days to convert investments in inventory and other resources into cash inflows from sales. This is a significant improvement compared to the previous quarter, Q3 2023, where the cash conversion cycle was prolonged at 40.66 days.

In Q2 2023, Clearway Energy Inc experienced a negative cash conversion cycle of -2.74 days, implying that the company was able to convert resources into cash before paying its suppliers. However, this was offset by Q1 2023, where the cash conversion cycle was -19.13 days, indicating that the company took longer to generate cash from its investments.

The company's performance in Q4 2022 and Q3 2022 was not as efficient as in Q4 2023, with cash conversion cycles of 21.76 days and 42.83 days, respectively. Q2 2022 also showed a higher cash conversion cycle of 37.63 days. However, Clearway Energy Inc managed to improve its cash conversion cycle significantly in Q1 2022, with a cycle of 2.97 days.

Overall, Clearway Energy Inc's cash conversion cycle has been variable, with some quarters showing efficient conversion of resources into cash, while others experienced longer cash conversion cycles. Monitoring the cash conversion cycle can provide insights into the company's efficiency in managing working capital and its ability to generate cash from operations.