NRG Energy Inc. (NRG)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 199,000 | 541,000 | 430,000 | 250,000 | 3,905,000 |
| Short-term investments | US$ in thousands | — | -6,000 | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 8,813,000 | 9,500,000 | 12,982,000 | 7,915,000 | 1,915,000 |
| Quick ratio | 0.02 | 0.06 | 0.03 | 0.03 | 2.04 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($199,000K
+ $—K
+ $—K)
÷ $8,813,000K
= 0.02
The quick ratio of NRG Energy Inc. has shown a concerning trend over the past few years. In December 2020, the quick ratio stood at a healthy 2.04, indicating that the company had more than enough liquid assets to cover its current liabilities. However, there was a significant decline in subsequent years, with the quick ratio dropping to 0.03 by December 2021 and remaining at the same level through December 2022. This sharp decrease suggests that NRG Energy Inc. may be facing challenges in meeting its short-term obligations with its available liquid assets.
There was a slight improvement in December 2023, with the quick ratio increasing to 0.06. While this indicates a slight strengthening of the company's ability to meet its short-term liabilities with its quick assets, the ratio is still relatively low. In December 2024, the quick ratio decreased again to 0.02, signaling a potential liquidity strain for NRG Energy Inc.
Overall, the downward trend in the quick ratio of NRG Energy Inc. raises concerns about the company's short-term liquidity position and its ability to cover current obligations efficiently. It is essential for the company to closely monitor its liquidity management and take appropriate measures to improve its quick ratio in the future.
Peer comparison
Dec 31, 2024