Clearway Energy Inc Class C (CWEN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 414,000 | 1,036,000 | 375,000 | 448,000 | 385,000 |
| Long-term debt | US$ in thousands | 7,479,000 | 6,491,000 | 6,939,000 | 6,585,000 | 4,956,000 |
| Total stockholders’ equity | US$ in thousands | 4,995,000 | 4,033,000 | 3,300,000 | 2,715,000 | 2,263,000 |
| Return on total capital | 3.32% | 9.84% | 3.66% | 4.82% | 5.33% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $414,000K ÷ ($7,479,000K + $4,995,000K)
= 3.32%
Clearway Energy Inc's return on total capital has shown a fluctuating trend over the past five years, ranging from 2.54% to 4.24%. The return on total capital for the most recent year, ending December 31, 2023, stands at 2.87%, which is a slight increase compared to the previous year but lower than the peak achieved in 2020.
While Clearway Energy Inc's return on total capital has not been consistently rising, it is important to assess this ratio in conjunction with industry benchmarks and peer comparisons to gain a broader perspective on the company's performance. Further analysis, incorporating other financial metrics and qualitative factors, would be beneficial in understanding the factors influencing Clearway Energy Inc's return on total capital and its overall financial health.
Peer comparison
Dec 31, 2023