Clearway Energy Inc Class C (CWEN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,560,000 | 1,276,000 | 1,531,000 | 708,000 | 608,000 |
| Total current liabilities | US$ in thousands | 906,000 | 617,000 | 1,631,000 | 634,000 | 2,057,000 |
| Current ratio | 1.72 | 2.07 | 0.94 | 1.12 | 0.30 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,560,000K ÷ $906,000K
= 1.72
The current ratio, which measures Clearway Energy Inc's ability to cover its short-term liabilities with its current assets, has fluctuated over the past five years. In 2023 and 2022, the company had current ratios of 1.72 and 2.07, respectively, indicating a healthy liquidity position. This suggests that Clearway Energy Inc had more than enough current assets to cover its short-term obligations during these years.
Conversely, in 2021 and 2020, the current ratio dropped to 0.94 and 1.12, respectively, signaling a weakening liquidity position compared to the previous years. A current ratio below 1 implies that the company may have difficulty meeting its short-term obligations with its current assets alone.
Notably, in 2019, Clearway Energy Inc had a significantly lower current ratio of 0.30, indicating a potential liquidity crunch where its current assets were insufficient to cover its short-term liabilities.
Overall, the trend in Clearway Energy Inc's current ratio suggests fluctuations in liquidity over the past five years, with improvements seen in 2022 and 2023 compared to the lower ratios observed in 2019, 2020, and 2021. Monitoring this ratio going forward will be crucial to assess the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023