Clearway Energy Inc Class C (CWEN)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 385,000 | 372,000 | 338,000 | 372,000 |
| Interest expense (ttm) | US$ in thousands | 337,000 | 291,000 | 292,000 | 284,000 | 232,000 | 223,000 | 258,000 | 314,000 | 312,000 | 302,000 | 303,000 | 293,000 | 415,000 | 412,000 | 433,000 | 470,000 | 404,000 | 443,000 | 411,000 | 352,000 |
| Interest coverage | 1.23 | 1.36 | 1.31 | 3.90 | 4.47 | 4.69 | 4.10 | 1.15 | 1.20 | 1.06 | 1.12 | 1.23 | 1.08 | 1.15 | 1.12 | 0.91 | 0.95 | 0.84 | 0.82 | 1.06 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $414,000K ÷ $337,000K
= 1.23
The interest coverage ratio measures a company's ability to meet its interest expenses with its operating income. A higher ratio indicates a greater ability to cover interest costs.
Looking at the data provided for Clearway Energy Inc, we observe fluctuations in the interest coverage ratio over the past eight quarters. The interest coverage ratio ranged from a low of 0.86 in Q4 2023 to a high of 1.20 in Q3 2022.
The trend indicates that Clearway Energy Inc's ability to cover its interest expenses improved in Q3 2022, but deteriorated in Q4 2023. The company experienced a dip in its interest coverage ratio in the most recent quarter, potentially signaling some challenges in generating sufficient operating income to cover its interest payments.
It would be advisable for stakeholders to assess the factors influencing the fluctuations in Clearway Energy Inc's interest coverage ratio, such as changes in revenue, expenses, or debt levels, to gain a better understanding of the company's financial health and ability to service its debt obligations.
Peer comparison
Dec 31, 2023