Clearway Energy Inc Class C (CWEN)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,560,000 | 1,734,000 | 1,289,000 | 1,289,000 | 1,276,000 | 1,488,000 | 1,635,000 | 1,373,000 | 1,531,000 | 853,000 | 767,000 | 734,000 | 708,000 | 773,000 | 654,000 | 554,000 | 608,000 | 619,000 | 498,000 | 456,000 |
| Total current liabilities | US$ in thousands | 906,000 | 844,000 | 606,000 | 638,000 | 617,000 | 808,000 | 749,000 | 1,527,000 | 1,631,000 | 816,000 | 754,000 | 748,000 | 634,000 | 602,000 | 555,000 | 1,714,000 | 2,057,000 | 2,246,000 | 2,127,000 | 1,787,000 |
| Current ratio | 1.72 | 2.05 | 2.13 | 2.02 | 2.07 | 1.84 | 2.18 | 0.90 | 0.94 | 1.05 | 1.02 | 0.98 | 1.12 | 1.28 | 1.18 | 0.32 | 0.30 | 0.28 | 0.23 | 0.26 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,560,000K ÷ $906,000K
= 1.72
The current ratio of Clearway Energy Inc has shown fluctuations over the past eight quarters, ranging from a low of 0.90 in Q1 2022 to a high of 2.13 in Q2 2023. The current ratio measures the company's ability to cover its short-term obligations with its current assets, with a higher ratio indicating stronger liquidity and financial health.
The current ratio improved steadily from Q1 2022 to Q2 2023, reaching its peak at 2.13 before slightly declining in the subsequent quarters. While a ratio above 1 generally suggests that the company is able to meet its short-term liabilities, a ratio significantly above 1, such as in Q2 2023, indicates a strong ability to cover obligations.
However, the significant drop in the current ratio to 0.90 in Q1 2022 is a cause for concern as it indicates potential liquidity issues and an insufficient amount of current assets to cover short-term liabilities. Investors and analysts should closely monitor Clearway Energy's current ratio going forward to ensure the company maintains a healthy level of liquidity and financial stability.
Peer comparison
Dec 31, 2023