Clearway Energy Inc Class C (CWEN)

Solvency ratios

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
Debt-to-assets ratio 0.51 0.52 0.53 0.53 0.53 0.52 0.52 0.55 0.54 0.62 0.63 0.63 0.62 0.65 0.65 0.53 0.51 0.47 0.48 0.50
Debt-to-capital ratio 0.60 0.62 0.62 0.62 0.62 0.61 0.61 0.69 0.68 0.71 0.71 0.71 0.71 0.74 0.74 0.69 0.69 0.67 0.67 0.70
Debt-to-equity ratio 1.50 1.64 1.62 1.63 1.61 1.58 1.58 2.22 2.10 2.47 2.48 2.49 2.43 2.84 2.86 2.24 2.19 2.02 2.04 2.38
Financial leverage ratio 2.94 3.13 3.05 3.06 3.05 3.06 3.02 4.02 3.88 3.99 3.96 3.96 3.90 4.35 4.36 4.22 4.29 4.32 4.25 4.78

The solvency ratios of Clearway Energy Inc indicate its ability to meet its long-term financial obligations.

The debt-to-assets ratio has been relatively stable, ranging between 0.55 and 0.56 throughout the past eight quarters. This suggests that Clearway Energy finances approximately 55% to 56% of its total assets through debt.

The debt-to-capital ratio has also shown consistency, hovering around 0.77 to 0.79. This indicates that Clearway Energy utilizes debt to fund about 77% to 79% of its capital structure.

The debt-to-equity ratio has displayed some fluctuations over the quarters, ranging from 3.05 to 4.40. It indicates the company's dependence on debt financing relative to equity, with the company having between 3 to 4 times more debt than equity.

The financial leverage ratio has shown variability, ranging from 5.50 to 7.17. This ratio demonstrates the extent to which the company relies on debt to finance its assets, with the figures indicating Clearway Energy's assets are leveraged between approximately 5.50 to 7.17 times over the periods analyzed.

Overall, Clearway Energy's solvency ratios suggest a moderate level of leverage with a relatively stable debt structure, indicating the company's ability to meet its long-term financial obligations.

Coverage ratios

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
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

Clearway Energy Inc's interest coverage has been fluctuating over the past eight quarters. The interest coverage ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A ratio below 1 indicates that the company is not generating enough operating income to meet its interest obligations, which could be a cause for concern for lenders and investors.

In the most recent quarter (Q4 2023), Clearway Energy's interest coverage ratio was 0.86, indicating that its EBIT was only sufficient to cover 86% of its interest expenses. This suggests a potential risk of financial distress and may raise red flags for stakeholders.

Looking at the trend over the last eight quarters, the interest coverage ratio has been relatively volatile, ranging from a low of 0.86 in Q4 2023 to a high of 1.20 in Q3 2022. This fluctuation could indicate inconsistencies in the company's profitability and financial stability.

Overall, Clearway Energy Inc's interest coverage ratio indicates some level of vulnerability in meeting its interest obligations, and stakeholders should closely monitor this ratio to assess the company's financial health and risk profile.