Clearway Energy Inc Class C (CWEN)

Clearway Energy Inc Class C has shown a consistent improvement in its solvency ratios over the years based on the provided data. The Debt-to-assets ratio decreased from 0.62 in 2020 to 0.47 in 2024, indicating that the company has been able to reduce its level of debt relative to its total assets.

Similarly, the Debt-to-capital ratio also witnessed a decline from 0.71 in 2020 to 0.55 in 2024, suggesting a decreasing reliance on debt financing in relation to the total capital structure of the company.

The Debt-to-equity ratio showed a significant reduction from 2.43 in 2020 to 1.21 in 2024, reflecting a decreasing level of debt compared to the equity, which implies a stronger financial position and lower financial risk.

Moreover, the Financial leverage ratio decreased from 3.90 in 2020 to 2.58 in 2024, indicating a decreasing reliance on debt and a more efficient capital structure.

Overall, the improving trend in these solvency ratios suggests that Clearway Energy Inc Class C has been effectively managing its debt levels and enhancing its financial stability over the years. This may be perceived positively by investors and lenders as it indicates a lower risk of financial distress.

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Coverage ratios

Based on the provided data, the interest coverage ratio for Clearway Energy Inc Class C has shown fluctuations over the five-year period from December 31, 2020, to December 31, 2024.

As of December 31, 2020, the interest coverage ratio was 1.08, indicating that the company's operating income was just sufficient to cover its interest expenses. This suggests a relatively weak ability to meet interest payments.

By December 31, 2021, the interest coverage ratio improved slightly to 1.20, but still remained low, reflecting continued vulnerability in meeting interest obligations.

However, there was a significant improvement in the company's financial position by December 31, 2022, when the interest coverage ratio surged to 4.47. This substantial increase suggests that Clearway Energy Inc Class C was generating significantly higher operating income relative to its interest expenses, indicating a stronger ability to cover interest payments.

The interest coverage ratio dropped back to 1.23 by December 31, 2023, which was a decrease from the previous year but remained above the critical threshold of 1. This may signal a slight decline in the company's ability to cover its interest obligations efficiently.

Finally, as of December 31, 2024, the interest coverage ratio spiked to 7.00, demonstrating a robust financial position where Clearway Energy Inc Class C was generating ample operating income to comfortably cover its interest expenses.

Overall, the fluctuations in Clearway Energy Inc Class C's interest coverage ratio over the five-year period highlight both improvements and vulnerabilities in the company's ability to meet its interest obligations. It is essential for investors and stakeholders to monitor this ratio to assess the company's financial health and risk profile accurately.