Clearway Energy Inc Class C (CWEN)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	196,000	414,000	1,036,000	375,000	448,000
Interest expense	US$ in thousands	28,000	337,000	232,000	312,000	415,000
Interest coverage		7.00	1.23	4.47	1.20	1.08

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $196,000K ÷ $28,000K
= 7.00

The interest coverage ratio for Clearway Energy Inc Class C has shown fluctuations over the years. As of December 31, 2020, the company had a relatively low interest coverage of 1.08, indicating its ability to cover interest expenses just slightly exceeded its operating income.

By December 31, 2021, the interest coverage ratio improved slightly to 1.20, but it still remained at a level that could be concerning for potential investors or creditors.

However, there was a significant improvement in the interest coverage ratio as of December 31, 2022, when it rose to 4.47. This increase suggests that Clearway Energy Inc Class C's operating income was more than sufficient to cover its interest expenses, reflecting a stronger financial position.

Subsequently, by December 31, 2023, the interest coverage ratio decreased to 1.23, indicating a potential strain on the company's ability to cover its interest payments from operating earnings.

As of the latest available data on December 31, 2024, Clearway Energy Inc Class C's interest coverage ratio further improved to a healthy level of 7.00. This significant increase suggests a robust ability to meet interest obligations comfortably from operating income.

In conclusion, Clearway Energy Inc Class C's interest coverage ratio has displayed fluctuations, ranging from concerning levels to a strong position. Investors and stakeholders should continue to monitor this ratio to assess the company's ability to meet its interest obligations.