NRG Energy Inc. (NRG)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | -732,000 | 2,114,000 | 4,116,000 | 2,553,000 | 2,518,000 |
| Revenue | US$ in thousands | 28,823,000 | 31,543,000 | 26,989,000 | 9,093,000 | 9,821,000 |
| Gross profit margin | -2.54% | 6.70% | 15.25% | 28.08% | 25.64% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $-732,000K ÷ $28,823,000K
= -2.54%
NRG Energy Inc.'s gross profit margin has exhibited a declining trend over the past five years, as seen from the data provided. The margin dropped from 25.64% in 2019 to 7.10% in 2023. This indicates a significant decrease in the percentage of revenue retained after accounting for the cost of goods sold. The lower gross profit margin may suggest challenges in effectively managing production costs or pricing strategies. Further analysis of the company's operational efficiency and pricing decisions would be necessary to understand the causes and implications of this decline in gross profit margin.
Peer comparison
Dec 31, 2023