NRG Energy Inc. (NRG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.44% | 7.97% | 12.99% | 24.11% | 28.08% |
| Operating profit margin | 8.62% | 1.33% | 6.40% | 12.38% | 12.15% |
| Pretax margin | 5.15% | -0.74% | 5.27% | 10.59% | 8.37% |
| Net profit margin | 4.00% | -0.70% | 3.87% | 8.10% | 5.61% |
The gross profit margin of NRG Energy Inc. has shown a declining trend from 28.08% in December 2020 to 7.97% in December 2023, followed by a significant increase to 21.44% in December 2024. This may indicate fluctuations in the cost of goods sold relative to revenue.
Similarly, the operating profit margin also fluctuated, with a slight increase in December 2021 compared to December 2020, a significant decrease in December 2022, followed by a rebound in December 2024. This indicates varying efficiencies in managing operating expenses.
The pretax margin showed a mixed performance, with a notable increase in December 2021, followed by fluctuations and a negative margin in December 2023. It recovered to 5.15% in December 2024. This suggests fluctuations in pre-tax earnings relative to revenue.
The net profit margin, which reflects the company's bottom line profitability, increased in December 2021, decreased in December 2022 to a negative margin, and recovered to 4.00% in December 2024. This indicates fluctuations in net income relative to revenue, potentially due to variations in expenses and non-operating items.
Overall, NRG Energy Inc.'s profitability ratios have shown volatility over the years, reflecting challenges in managing costs and generating consistent margins. Monitoring these ratios can help assess the company's financial health and performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.09% | 1.47% | 6.92% | 14.41% | 7.42% |
| Return on assets (ROA) | 4.68% | -0.78% | 4.19% | 9.43% | 3.42% |
| Return on total capital | 84.71% | 15.76% | 54.34% | 92.89% | 69.17% |
| Return on equity (ROE) | 45.40% | -6.95% | 31.90% | 60.75% | 30.36% |
Based on the provided data for NRG Energy Inc., the company's profitability ratios exhibit fluctuations over the years.
1. Operating Return on Assets (Operating ROA):
- NRG Energy Inc.'s Operating ROA shows an upward trend from 7.42% in 2020 to 14.41% in 2021, then declines to 6.92% in 2022, further dropping to 1.47% in 2023, and then rebounding to 10.09% in 2024.
2. Return on Assets (ROA):
- The company's ROA experienced fluctuations, starting at 3.42% in 2020, increasing to 9.43% in 2021, dropping to 4.19% in 2022, turning negative at -0.78% in 2023, and then recovering to 4.68% in 2024.
3. Return on Total Capital:
- NRG Energy Inc.'s Return on Total Capital demonstrates variability, with a significant increase from 69.17% in 2020 to 92.89% in 2021, followed by a decrease to 54.34% in 2022, a further decline to 15.76% in 2023, and a subsequent rise to 84.71% in 2024.
4. Return on Equity (ROE):
- The ROE of NRG Energy Inc. also fluctuates, starting at 30.36% in 2020, increasing to 60.75% in 2021, then declining to 31.90% in 2022, turning negative at -6.95% in 2023, and recovering to 45.40% in 2024.
These variations in profitability ratios suggest that NRG Energy Inc. has experienced changes in its operational efficiency and ability to generate profits relative to its assets, capital, and equity over the years. It would be important to further investigate the factors driving these fluctuations to gain a deeper understanding of the company's performance and potential future prospects.