Clearway Energy Inc Class C (CWEN)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 263,000 | 1,470,000 | 267,000 | 333,000 | 224,000 |
| Total assets | US$ in thousands | 14,701,000 | 12,312,000 | 12,813,000 | 10,592,000 | 9,700,000 |
| Operating ROA | 1.79% | 11.94% | 2.08% | 3.14% | 2.31% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $263,000K ÷ $14,701,000K
= 1.79%
Operating return on assets (Operating ROA) is a key financial metric that indicates how efficiently Clearway Energy Inc is generating operating profits relative to its total assets. Looking at the trend over the past five years, we observe fluctuations in Clearway Energy Inc's Operating ROA.
In 2023, the company's Operating ROA stood at 1.90%, a slight increase from the previous year's 1.63%. This indicates that for every dollar of assets Clearway Energy Inc holds, it generated approximately 1.90 cents of operating income. While the increase is positive, it is important to note that the Operating ROA remains relatively low compared to historical figures.
In 2021, the company experienced a dip in Operating ROA to 2.19% from 3.46% in 2020. This decline suggests a potential decrease in operational efficiency or profitability relative to the assets employed. However, Clearway Energy Inc managed to maintain a level above the 2019 Operating ROA of 2.68%.
Analyzing Clearway Energy Inc's Operating ROA trend indicates varying levels of efficiency in utilizing its assets to generate operating income. It is essential for the company to focus on optimizing asset utilization and improving operational performance to enhance its overall profitability and create sustainable value for shareholders.
Peer comparison
Dec 31, 2023