NRG Energy Inc. (NRG)

Activity ratios

Short-term

Turnover 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
Inventory turnover 48.63 49.75 47.31 46.17 39.13 36.04 39.18 57.22 43.87 34.71 36.90 37.81 20.00 19.94 17.26 19.11 19.07 19.90 19.81 18.86
Receivables turnover 8.14 7.94 9.30 8.91 6.60 7.57 7.47 8.14 8.32 7.10 6.44 4.99 10.06 8.22 9.31 10.57 9.58 6.99 9.13 10.67
Payables turnover 12.70 14.25 15.40 14.31 8.07 9.69 8.07 9.14 9.61 7.85 6.22 5.39 10.08 8.74 9.10 10.04 10.11 8.37 10.14 10.58
Working capital turnover 126.97 55.52 124.22 — 9.71 6.69 6.12 5.82 9.22 8.57 10.73 20.03 2.21 8.41 10.28 15.43 13.47 15.44 12.76 6.33

NRG Energy Inc.'s activity ratios indicate how effectively the company manages its assets and liabilities to generate sales.

1. Inventory turnover: The inventory turnover ratio measures how efficiently a company is able to sell its inventory during a specific period. NRG Energy Inc.'s inventory turnover has been consistently high, ranging from 36.56 to 45.87 over the past eight quarters. This indicates that the company is effectively managing its inventory levels and selling products quickly.

2. Receivables turnover: The receivables turnover ratio shows how many times a company collects its accounts receivable during a particular period. NRG Energy Inc.'s receivables turnover has been relatively stable, varying between 6.61 and 9.30 over the same period. A higher turnover implies that the company is efficiently collecting payments from customers.

3. Payables turnover: The payables turnover ratio measures how quickly a company pays its suppliers. NRG Energy Inc.'s payables turnover has shown an increasing trend, ranging from 7.36 to 14.39 over the past eight quarters. A higher turnover indicates that the company is managing its payables effectively by paying suppliers promptly.

4. Working capital turnover: The working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate revenue. NRG Energy Inc.'s working capital turnover has shown significant fluctuations, ranging from 5.82 to 126.97 across the quarters analyzed. A higher turnover indicates that the company is effectively using its working capital to support its operations and generate sales.

Overall, based on the activity ratios, NRG Energy Inc. appears to be efficiently managing its inventory, receivables, payables, and working capital to drive sales and maintain a healthy financial position. The company's consistent performance in these areas suggests effective operational management and financial efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 7.51 7.34 7.71 7.90 9.33 10.13 9.32 6.38 8.32 10.51 9.89 9.65 18.25 18.31 21.14 19.10 19.14 18.34 18.42 19.35
Days of sales outstanding (DSO) days 44.85 45.99 39.26 40.95 55.29 48.23 48.89 44.83 43.89 51.44 56.69 73.10 36.29 44.38 39.21 34.52 38.09 52.22 39.96 34.22
Number of days of payables days 28.75 25.62 23.70 25.51 45.25 37.66 45.24 39.93 37.99 46.48 58.69 67.70 36.22 41.78 40.11 36.35 36.09 43.63 36.00 34.50

The activity ratios of NRG Energy Inc. reveal important insights into the efficiency of its operations.

1. Days of Inventory on Hand (DOH): The trend in DOH shows a slight decrease from Q4 2022 to Q1 2023, indicating a more efficient management of inventory levels. However, the DOH figures fluctuate during the year, suggesting potential challenges in maintaining optimal inventory levels.

2. Days of Sales Outstanding (DSO): The DSO ratio depicts the average number of days it takes for NRG Energy Inc. to collect revenues from its customers. A decreasing trend from Q4 2022 to Q2 2023 indicates an improvement in the collection process and more efficient cash flow management. However, the increase in DSO during Q3 2023 may raise concerns about potential difficulties in collecting outstanding payments.

3. Number of Days of Payables: The trend in the number of days of payables reflects the average number of days NRG Energy Inc. takes to pay its suppliers. A decreasing trend from Q4 2022 to Q2 2023 suggests the company is likely paying its suppliers more promptly. However, the increase in Q3 2023 compared to Q2 2023 indicates a potential slowdown in paying off its payables.

Overall, monitoring these activity ratios is crucial for NRG Energy Inc. to ensure efficient management of inventory, timely collection of receivables, and effective management of payables for maintaining a healthy cash conversion cycle.

Long-term

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
Fixed asset turnover — — — — — — — — — — — — — 3.60 3.73 3.76 3.79 3.68 3.67 3.61
Total asset turnover 1.11 1.07 1.05 1.06 1.08 0.95 0.84 0.91 1.16 0.79 0.84 0.79 0.61 0.76 0.77 0.75 0.78 1.01 1.04 1.01

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. NRG Energy Inc.'s fixed asset turnover has been declining over the quarters, from 18.64 in Q4 2022 to 16.35 in Q4 2023. This indicates that the company may be experiencing challenges in generating revenue in relation to its investment in fixed assets.

On the other hand, the total asset turnover ratio reflects NRG Energy Inc.'s ability to generate sales from all of its assets. The total asset turnover has been fluctuating slightly but has remained relatively stable over the quarters, ranging from 0.84 in Q2 2022 to 1.11 in Q4 2023. This implies that the company is able to effectively utilize its total assets to generate sales.

Overall, the decreasing trend in fixed asset turnover may raise concerns about NRG Energy Inc.'s efficiency in utilizing its fixed assets, while the stable total asset turnover indicates consistent performance in utilizing all assets to generate revenue. Further analysis of the company's operational efficiency and asset management strategies may be necessary to understand the drivers behind these ratios.