NRG Energy Inc. (NRG)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -202,000 | 1,221,000 | 2,187,000 | 510,000 | 4,438,000 |
| Revenue | US$ in thousands | 28,823,000 | 31,543,000 | 26,989,000 | 9,093,000 | 9,821,000 |
| Net profit margin | -0.70% | 3.87% | 8.10% | 5.61% | 45.19% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $-202,000K ÷ $28,823,000K
= -0.70%
NRG Energy Inc.'s net profit margin has shown significant volatility over the past five years. The company experienced a strong net profit margin of 45.19% in 2019, which significantly declined to 5.61% in 2020. However, the net profit margin decreased further to 8.10% in 2021 before dropping into negative territory at -0.89% in 2023.
The negative net profit margin in 2023 indicates that NRG Energy Inc. incurred more expenses than the revenue it generated during that period. This could be a cause for concern as it suggests that the company may be facing challenges in managing its costs and generating adequate profits.
Overall, the fluctuating net profit margin of NRG Energy Inc. raises questions about the company's ability to consistently generate profitability and efficiently control its expenses over time. Management may need to focus on improving cost management strategies and revenue generation to enhance the company's financial performance in the future.
Peer comparison
Dec 31, 2023