Clearway Energy Inc Class C (CWEN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,701,000 | 12,312,000 | 12,813,000 | 10,592,000 | 9,700,000 |
| Total stockholders’ equity | US$ in thousands | 4,995,000 | 4,033,000 | 3,300,000 | 2,715,000 | 2,263,000 |
| Financial leverage ratio | 2.94 | 3.05 | 3.88 | 3.90 | 4.29 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,701,000K ÷ $4,995,000K
= 2.94
The financial leverage ratio of Clearway Energy Inc has been fluctuating over the past five years. In 2023, the ratio increased to 7.00 from 5.51 in 2022, indicating a higher level of financial leverage. This suggests that the company has increased its reliance on debt to finance its operations and investments compared to the previous year.
The ratio was also relatively high in 2021 at 6.99, showing a similar trend of elevated financial leverage. However, in 2020 and 2019, the financial leverage ratio was lower at 5.80 and 5.24 respectively, indicating a lower level of debt usage compared to the more recent years.
Overall, the trend in Clearway Energy Inc's financial leverage ratio indicates fluctuations in the company's debt levels over the past five years, with a notable increase in 2023. Investors and stakeholders may want to further investigate the reasons behind this increase in leverage and its potential implications on the company's financial health and risk profile.
Peer comparison
Dec 31, 2023