NRG Energy Inc. (NRG)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 199,000 | 541,000 | 430,000 | 250,000 | 3,905,000 |
| Short-term investments | US$ in thousands | — | -6,000 | — | — | — |
| Total current liabilities | US$ in thousands | 8,813,000 | 9,500,000 | 12,982,000 | 7,915,000 | 1,915,000 |
| Cash ratio | 0.02 | 0.06 | 0.03 | 0.03 | 2.04 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($199,000K
+ $—K)
÷ $8,813,000K
= 0.02
The cash ratio of NRG Energy Inc. has displayed fluctuations over the past five years. As of December 31, 2020, the company had a healthy cash ratio of 2.04, indicating a strong ability to cover its short-term liabilities with cash on hand. However, this ratio saw a notable decline by the end of 2021, dropping to a mere 0.03, which may raise concerns regarding the company's liquidity position. The subsequent years, 2022 and 2024, also reported a cash ratio of 0.03 and 0.02, respectively, suggesting persistent challenges in maintaining sufficient cash reserves relative to short-term obligations.
Notably, by the end of 2023, NRG Energy Inc.'s cash ratio improved to 0.06, reflecting a better liquidity position compared to the previous years, although it remains relatively low. This fluctuation in the cash ratio indicates the company's varying ability to meet its immediate financial obligations solely from cash resources. Overall, the trend in NRG Energy Inc.'s cash ratio underscores the importance of closely monitoring its liquidity management practices and cash flow position to ensure sustained financial stability.
Peer comparison
Dec 31, 2024