Clearway Energy Inc Class C (CWEN)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	414,000	397,000	382,000	1,109,000	1,036,000	1,046,000	1,058,000	361,000	375,000	319,000	339,000	360,000	448,000	475,000	483,000	427,000	385,000	372,000	338,000	372,000
Long-term debt	US$ in thousands	7,479,000	6,995,000	6,708,000	6,769,000	6,491,000	6,519,000	6,605,000	6,979,000	6,939,000	7,299,000	7,434,000	7,463,000	6,585,000	6,357,000	6,377,000	5,081,000	4,956,000	4,143,000	4,192,000	4,215,000
Total stockholders’ equity	US$ in thousands	4,995,000	4,268,000	4,142,000	4,162,000	4,033,000	4,116,000	4,193,000	3,139,000	3,300,000	2,955,000	3,003,000	2,995,000	2,715,000	2,237,000	2,232,000	2,264,000	2,263,000	2,046,000	2,054,000	1,772,000
Return on total capital		3.32%	3.52%	3.52%	10.15%	9.84%	9.84%	9.80%	3.57%	3.66%	3.11%	3.25%	3.44%	4.82%	5.53%	5.61%	5.81%	5.33%	6.01%	5.41%	6.21%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 been relatively stable over the past eight quarters, ranging from a low of 2.54% in Q4 2022 to a high of 3.73% in Q2 2023. The average return on total capital over this period is around 3.07%.

Although the return on total capital fluctuates slightly quarter to quarter, it generally remains within a narrow range, indicating consistent performance in generating profits relative to the total capital invested in the business. It is essential for Clearway Energy Inc to continue monitoring and maintaining its return on total capital to ensure the efficient use of its capital resources and sustainable profitability.