NRG Energy Inc. (NRG)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	28,823,000	31,543,000	26,989,000	9,093,000	9,821,000
Total current assets	US$ in thousands	9,727,000	16,231,000	10,841,000	6,028,000	3,088,000
Total current liabilities	US$ in thousands	9,500,000	12,982,000	7,915,000	1,915,000	2,359,000
Working capital turnover		126.97	9.71	9.22	2.21	13.47

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $28,823,000K ÷ ($9,727,000K – $9,500,000K)
= 126.97

The working capital turnover ratio for NRG Energy Inc. has exhibited significant fluctuations over the past five years. In 2023, the ratio reached 126.97, indicating a substantial increase compared to the previous year when it was 9.71. This surge suggests that the company was able to generate $126.97 in revenue for every dollar invested in working capital during the year.

In 2022 and 2021, the working capital turnover ratios were 9.71 and 9.22, respectively, reflecting relatively stable performance in efficiently utilizing working capital to generate revenue. However, in 2020, the ratio notably dropped to 2.21, signaling a decrease in the company's ability to generate revenue from working capital, potentially indicating inefficiencies in managing its current assets and liabilities.

The highest working capital turnover ratio in the past five years was recorded in 2019 at 13.47, indicating an efficient use of working capital to generate revenue. This suggests that the company was able to effectively leverage its current assets and liabilities to drive sales during that period.

Overall, the fluctuations in NRG Energy Inc.'s working capital turnover ratio suggest varying levels of efficiency in utilizing working capital to generate revenue over the years, with the company experiencing both peaks and troughs in performance.