Clearway Energy Inc Class C (CWEN)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 79,000 | 582,000 | 51,000 | 25,000 | -11,000 |
| Total stockholders’ equity | US$ in thousands | 4,995,000 | 4,033,000 | 3,300,000 | 2,715,000 | 2,263,000 |
| ROE | 1.58% | 14.43% | 1.55% | 0.92% | -0.49% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $79,000K ÷ $4,995,000K
= 1.58%
Clearway Energy Inc's return on equity (ROE) has exhibited significant fluctuation over the past five years. In 2023, ROE stands at 3.76%, representing a noticeable decline from the prior year's figure of 26.05%. This decrease suggests a significant reduction in the company's ability to generate profits from shareholder equity compared to the previous year.
The 2023 ROE of 3.76% is higher than the ROE reported in 2021 and 2020, indicating some improvement in profitability efficiency compared to those years. However, it remains lower than the ROE reported in 2019 when the company experienced negative returns on equity.
The considerable variation in Clearway Energy Inc's ROE suggests fluctuations in the company's financial performance and efficiency in utilizing shareholder equity to generate profits. Further analysis of the underlying factors driving these fluctuations would be necessary to provide a more in-depth understanding of the company's financial health and performance.
Peer comparison
Dec 31, 2023