Clearway Energy Inc Class C (CWEN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.49 | 1.59 | 1.46 | 1.71 | 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 |
| Quick ratio | 0.46 | 0.44 | 0.32 | 0.55 | 0.59 | 0.67 | 0.90 | 1.14 | 1.31 | 1.23 | 1.57 | 0.19 | 0.20 | 0.48 | 0.45 | 0.41 | 0.65 | 0.86 | 0.61 | 0.12 |
| Cash ratio | 0.46 | 0.44 | 0.32 | 0.55 | 0.59 | 0.67 | 0.90 | 0.90 | 1.06 | 0.98 | 1.28 | 0.09 | 0.11 | 0.23 | 0.18 | 0.19 | 0.42 | 0.60 | 0.32 | 0.06 |
Clearway Energy Inc Class C has shown an improvement in its liquidity ratios over the past few quarters. The current ratio, which measures the company's ability to pay its short-term obligations with its current assets, has increased from 0.32 in March 2020 to 1.49 in December 2024. This indicates that the company's current assets have been growing relative to its current liabilities, providing better coverage for its short-term obligations.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also displayed positive trends, rising from 0.12 in March 2020 to 0.46 in December 2024. This suggests that Clearway Energy Inc Class C has a sufficient level of liquid assets to cover its immediate liabilities without relying on inventory.
The cash ratio, which focuses solely on the most liquid assets like cash and equivalents to cover short-term liabilities, has shown an improvement as well, increasing from 0.06 in March 2020 to 0.46 in December 2024. This indicates that the company has increased its ability to meet its short-term obligations using its cash and near-cash holdings.
Overall, Clearway Energy Inc Class C has demonstrated strong improvements in its liquidity position over the analyzed period, with all three ratios showing positive trends. This suggests that the company has enhanced its financial flexibility and ability to meet its short-term obligations effectively.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Clearway Energy Inc Class C has fluctuated over the years, indicating changes in its efficiency in managing cash flow related to its operating cycle.
From March 2020 to September 2021, the company's cash conversion cycle saw a decreasing trend, indicating an improvement in managing its working capital. However, from December 2021 to September 2022, there was an increase in the cash conversion cycle, which suggests a longer period to convert its resources back into cash.
The negative cash conversion cycle observed from June 2023 to December 2023 indicates that Clearway Energy Inc Class C was able to convert its inventory and receivables into cash before having to pay its liabilities, which could be a positive sign of effective cash management during this period.
From March 2024 to December 2024, the cash conversion cycle increased again, signaling potential challenges or delays in converting its resources into cash. Further analysis would be required to understand the reasons behind these fluctuations and their impact on the company's overall financial health.