NRG Energy Inc. (NRG)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 28,183,000 | 28,088,000 | 28,811,000 | 28,510,000 | 28,740,000 | 29,871,000 | 30,435,000 | 31,369,000 | 31,543,000 | 30,734,000 | 28,833,000 | 26,794,000 | 26,989,000 | 21,970,000 | 18,170,000 | 15,165,000 | 9,093,000 | 9,261,000 | 9,448,000 | 9,675,000 |
| Total current assets | US$ in thousands | 199,000 | 12,000 | 9,806,000 | 9,268,000 | 9,727,000 | 9,468,000 | 10,121,000 | 10,208,000 | 16,231,000 | 18,963,000 | 21,148,000 | 16,837,000 | 10,841,000 | 14,572,000 | 8,624,000 | 6,552,000 | 6,028,000 | 3,087,000 | 3,076,000 | 3,479,000 |
| Total current liabilities | US$ in thousands | 8,813,000 | 7,348,000 | 8,302,000 | 9,176,000 | 9,500,000 | 8,930,000 | 9,876,000 | 10,326,000 | 12,982,000 | 14,366,000 | 16,437,000 | 12,233,000 | 7,915,000 | 12,009,000 | 6,931,000 | 5,795,000 | 1,915,000 | 1,986,000 | 2,157,000 | 2,852,000 |
| Working capital turnover | — | — | 19.16 | 309.89 | 126.61 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $28,183,000K ÷ ($199,000K – $8,813,000K)
= —
The working capital turnover ratio of NRG Energy Inc. shows how efficiently the company is utilizing its working capital to generate sales.
From the data provided, we can see fluctuations in the working capital turnover ratio over time. The ratio was quite high at 15.43 as of March 31, 2020, indicating that the company was generating $15.43 in revenue for every dollar of working capital. However, this ratio decreased in the following periods, reaching its lowest point of 2.21 by December 31, 2020. This suggests that the company's efficiency in converting working capital to sales declined during this period.
Subsequently, the working capital turnover ratio improved, reaching its peak at 309.89 as of March 31, 2024. A ratio of 309.89 indicates that the company generated significantly higher sales relative to its working capital during this period.
However, the ratio experienced a significant decline in the subsequent periods, particularly at June 30, 2024. This sharp decrease in the ratio to 19.16 may indicate a potential issue with the company's working capital management or sales generation efficiency.
Overall, the fluctuations in the working capital turnover ratio of NRG Energy Inc. suggest varying degrees of efficiency in utilizing working capital to generate sales over the analyzed periods. Further investigation into the company's operational and financial performance during these periods may provide insights into the factors influencing these fluctuations.
Peer comparison
Dec 31, 2024