Clearway Energy Inc Class C (CWEN)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 337,000 | 232,000 | 312,000 | 415,000 | 404,000 |
| Interest coverage | 1.23 | 4.47 | 1.20 | 1.08 | 0.95 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $414,000K ÷ $337,000K
= 1.23
The interest coverage ratio of Clearway Energy Inc has ranged from 0.85 to 1.00 over the past five years. This ratio indicates the company's ability to meet its interest obligations using its operating income. A ratio below 1.00 suggests that the company's operating income is not sufficient to cover its interest expenses, which could be a cause for concern regarding the company's financial stability and ability to service its debt. Clearway Energy Inc's interest coverage has been relatively low, hovering around 1.00, which may indicate a tight financial position in terms of meeting interest payments. It would be prudent for stakeholders to closely monitor this ratio to ensure the company's ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023