Clearway Energy Inc Class C (CWEN)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 362,000 | 502,000 | 403,000 | 369,000 | 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 |
| Long-term debt | US$ in thousands | 6,750,000 | 6,732,000 | 6,797,000 | 7,579,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 5,564,000 | 5,633,000 | 5,717,000 | 5,047,000 | 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 |
| Return on total capital | 2.94% | 4.06% | 3.22% | 2.92% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $362,000K ÷ ($6,750,000K + $5,564,000K)
= 2.94%
Clearway Energy Inc Class C's return on total capital has fluctuated over the years, indicating varying levels of efficiency in generating profits from its total capital employed.
From March 31, 2020, to December 31, 2021, the return on total capital declined steadily from 5.81% to 3.66%, reflecting potential challenges in the company's ability to maximize returns on its capital investments during this period.
However, from March 31, 2022, to September 30, 2022, there was a sharp increase in the return on total capital, jumping to 9.84%, suggesting a significant improvement in the company's profitability and efficiency in capital utilization.
Subsequently, from March 31, 2023, to December 31, 2024, the return on total capital experienced fluctuations, ranging from a high of 10.15% to a low of 2.92%, indicating potential volatility in the company's ability to generate consistent returns from its total capital.
Overall, Clearway Energy Inc Class C's return on total capital performance highlights the importance of closely monitoring and analyzing this metric to assess the company's financial health and efficiency in utilizing its capital resources effectively.
Peer comparison
Dec 31, 2024