NRG Energy Inc. (NRG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -2.54% | 6.70% | 15.25% | 28.08% | 25.64% |
| Operating profit margin | 1.33% | 6.40% | 12.38% | 12.15% | 13.14% |
| Pretax margin | -0.74% | 5.27% | 10.59% | 8.37% | 11.24% |
| Net profit margin | -0.70% | 3.87% | 8.10% | 5.61% | 45.19% |
NRG Energy Inc.'s profitability ratios have shown fluctuations over the past five years. The gross profit margin has declined from 25.64% in 2019 to 7.10% in 2023, indicating a decrease in the company's ability to generate profit after accounting for cost of goods sold.
The operating profit margin also experienced a downward trend, with a negative margin of -3.64% in 2023 compared to 13.35% in 2019. This suggests that the company's operating expenses relative to its revenue have increased significantly, leading to operating losses in recent years.
Similarly, the pretax margin and net profit margin reflect a downward trajectory, indicating declining profitability before and after accounting for taxes. The pretax margin decreased from 8.00% in 2019 to -0.74% in 2023, while the net profit margin decreased from 45.19% in 2019 to -0.89% in 2023.
Overall, NRG Energy Inc. has experienced decreasing profitability ratios over the past five years, which may raise concerns about the company's operational efficiency and financial performance. Further analysis of the company's cost structure and revenue generation capabilities would be necessary to understand the underlying factors contributing to this decline in profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.47% | 6.92% | 14.41% | 7.42% | 10.29% |
| Return on assets (ROA) | -0.78% | 4.19% | 9.43% | 3.42% | 35.42% |
| Return on total capital | 15.62% | 17.62% | 28.91% | 11.20% | 20.28% |
| Return on equity (ROE) | -6.95% | 31.90% | 60.75% | 30.36% | 264.48% |
The profitability ratios of NRG Energy Inc. have fluctuated over the past five years.
Operating return on assets (Operating ROA) has shown a declining trend from 2019 to 2023, indicating a decrease in the company's ability to generate profits from its assets solely through operations.
Return on assets (ROA) has also experienced fluctuations over the period, with a significant drop in 2020 followed by a gradual increase in the following years. This ratio signifies the company's effectiveness in utilizing its assets to generate earnings.
Return on total capital shows a similar pattern to ROA, with a sharp decline in 2020 and improvements in the subsequent years. This ratio reflects how efficiently the company is generating returns from both debt and equity capital.
Return on equity (ROE) has been quite volatile, reaching its peak in 2019 and then decreasing in the following years. This ratio indicates the company's ability to generate profits for its shareholders from the equity invested in the company.
Overall, NRG Energy Inc.'s profitability ratios have shown fluctuations, with some ratios improving over time while others have declined. This analysis suggests that the company has experienced varying levels of efficiency in generating profits from its assets, total capital, and equity over the past five years.