Clearway Energy Inc Class C (CWEN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.59 | 0.73 | 0.96 | 1.18 | 1.35 | 1.26 | 1.59 | 0.19 | 0.20 | 1.25 | 1.30 | 0.41 | 1.82 | 2.52 | 0.61 | 0.12 | 0.13 | 0.13 | 0.10 | 0.12 |
| Cash ratio | 0.59 | 0.73 | 0.96 | 0.95 | 1.11 | 1.01 | 1.29 | 0.09 | 0.11 | 1.01 | 1.03 | 0.19 | 1.59 | 2.26 | 0.32 | 0.06 | 0.08 | 0.07 | 0.04 | 0.07 |
Clearway Energy Inc's liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has ranged from a low of 0.90 in Q1 2022 to a high of 2.13 in Q2 2023. Generally, a current ratio above 1 indicates a healthy liquidity position, and Clearway Energy Inc has consistently maintained current ratios above this threshold.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Clearway Energy Inc's quick ratio has varied from a low of 0.23 in Q1 2022 to a high of 1.43 in Q2 2023. While the quick ratio values have been lower than the current ratio values, they still indicate the company's ability to meet its short-term obligations, particularly in the most recent quarters.
The cash ratio, which focuses solely on the company's ability to cover its current liabilities with its cash and cash equivalents, has fluctuated from 0.13 in Q1 2022 to 1.07 in Q2 2023. Clearway Energy Inc's cash ratio values have generally been above 1, signaling a strong ability to cover its short-term liabilities with readily available cash.
Overall, Clearway Energy Inc's liquidity ratios suggest that the company has maintained a solid liquidity position over the past eight quarters. The upward trends in the current and quick ratios, as well as the consistently high cash ratio values, indicate that the company has sufficient liquidity to meet its short-term obligations and fund its operations.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Clearway Energy Inc fluctuated significantly over the past eight quarters. In Q4 2023, the company's cash conversion cycle was notably efficient at 14.04 days, reflecting its ability to convert resources into cash quickly. This marked an improvement from the previous quarter, where the cycle was significantly extended at 40.66 days.
In Q3 2023, the cash conversion cycle was much longer at 40.66 days compared to Q2 2023, where Clearway Energy Inc managed to operate with a negative cycle of -2.74 days. This negative cycle indicates that the company successfully generated cash from its operations before paying its current liabilities, reflecting strong management of working capital.
However, in Q1 2023, the cash conversion cycle turned negative again at -19.13 days, showing that Clearway Energy Inc continued to efficiently manage its cash flow and working capital. Looking back to Q4 2022, the cycle was notably longer at 21.76 days, indicating a less efficient process of converting resources into cash.
Across the past eight quarters, Clearway Energy Inc experienced varying levels of efficiency in its cash conversion cycle, with Q3 2022 showing a particularly extended cycle of 42.83 days. The company improved this metric in Q1 2022 with a cycle of only 2.97 days, indicating a strong performance in cash management and working capital.
Overall, the fluctuating trend in Clearway Energy Inc's cash conversion cycle suggests a dynamic approach to managing cash flow and working capital efficiency over the analyzed period.