NRG Energy Inc. (NRG)

Liquidity ratios

	Dec 31, 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
Current ratio	0.02	1.18	1.01	1.02	1.06	1.02	0.99	1.25	1.32	1.29	1.38	1.37	1.21	1.24	1.13	3.15	1.55	1.43	1.22
Quick ratio	0.02	0.05	0.03	0.06	0.05	0.04	0.04	0.03	0.02	0.04	0.03	0.03	0.04	0.05	0.09	2.04	0.54	0.19	0.27
Cash ratio	0.02	0.05	0.03	0.06	0.05	0.04	0.04	0.03	0.02	0.04	0.03	0.03	0.04	0.05	0.09	2.04	0.54	0.19	0.27

NRG Energy Inc.'s liquidity ratios show fluctuating trends over the years.

The current ratio, which measures the company's ability to meet short-term obligations with its short-term assets, has varied between 0.99 to 3.15 during the period from March 31, 2020, to December 31, 2024. The ratio peaked at 3.15 on December 31, 2020, indicating a strong ability to cover current liabilities with current assets. However, the ratio declined significantly in the subsequent quarters, reaching a low of 0.00 on September 30, 2024, which may suggest potential liquidity concerns.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. NRG Energy Inc.'s quick ratio fluctuated between 0.03 to 2.04 during the same period. The ratio was highest on December 31, 2020, at 2.04, indicating a strong ability to meet short-term obligations without relying on inventory. However, the ratio dropped to 0.00 on September 30, 2024, signaling a potential liquidity strain without the support of inventory assets.

The cash ratio, which specifically assesses a company's ability to cover immediate liabilities with its cash and cash equivalents, followed a similar trend to the quick ratio. It ranged between 0.03 to 2.04 during the period, with the highest ratio observed on December 31, 2020. The ratio decreased to 0.00 on September 30, 2024, implying a weakening ability to meet short-term obligations solely with available cash on hand.

Overall, NRG Energy Inc.'s liquidity ratios demonstrate volatility and highlight the importance of closely monitoring short-term financial health and liquidity management strategies to navigate potential periods of liquidity strain.

Additional liquidity measure

		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
Cash conversion cycle	days	7.26	7.93	9.46	9.00	8.57	7.93	8.24	8.42	9.99	11.00	10.26	6.96	8.87	10.74	9.89	9.65	18.25	18.31	21.14	19.10

The cash conversion cycle of NRG Energy Inc. fluctuated over the analyzed period. Starting at 19.10 days on March 31, 2020, it increased to 21.14 days by June 30, 2020, before declining to 18.31 days by September 30, 2020. The company managed to further reduce the cycle to 9.65 days by March 31, 2021, reaching a low point. From this period, the trend turned upward, with slight increases observed until December 31, 2022, where the cycle was at 9.99 days.

Between March 31, 2023, and June 30, 2024, NRG Energy Inc. maintained the cash conversion cycle at relatively stable levels, generally ranging between 7.93 days and 9.46 days. Finally, by the end of the analysis on December 31, 2024, the cash conversion cycle decreased to 7.26 days, showing improvement in the company's efficiency in managing its working capital.

Overall, NRG Energy Inc. exhibited fluctuations in its cash conversion cycle, indicating changes in the efficiency of its cash management and working capital utilization over the analyzed period. The company's ability to further optimize its cash conversion cycle would be crucial in enhancing its liquidity position and operational performance moving forward.