Clearway Energy Inc Class C (CWEN)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 77,000 | 804,000 | 63,000 | 33,000 | -19,000 |
| Revenue | US$ in thousands | 1,314,000 | 1,190,000 | 1,286,000 | 1,199,000 | 1,032,000 |
| Pretax margin | 5.86% | 67.56% | 4.90% | 2.75% | -1.84% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $77,000K ÷ $1,314,000K
= 5.86%
Clearway Energy Inc's pretax margin has varied significantly over the past five years. In 2023, the company reported a negative pretax margin of -1.22%, which indicates that Clearway Energy's pre-tax earnings were insufficient to cover its operating expenses and other costs.
The pretax margin was exceptionally high at 107.73% in 2022, suggesting that Clearway Energy was able to generate significant earnings before taxes relative to its revenue during that year. However, such a high pretax margin may also indicate anomalies or special circumstances that impacted the company's financial performance that year.
In 2021, Clearway Energy reported another negative pretax margin of -4.90%, indicating persistent challenges in generating pre-tax profitability. The trend continued in 2020 with a pretax margin of -4.50% and in 2019 with a margin of -10.08%.
Overall, Clearway Energy Inc's pretax margin has been volatile, with periods of strong profitability and significant losses. It is essential for the company to closely monitor and manage its cost structure, revenue generation, and operational efficiency to improve its pretax margin and overall financial performance.
Peer comparison
Dec 31, 2023