NRG Energy Inc. (NRG)
Net profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -202,000 | -1,779,000 | -2,055,000 | -1,850,000 | 1,221,000 | 1,889,000 | 3,440,000 | 4,005,000 | 2,187,000 | 2,441,000 | 1,072,000 | 307,000 | 510,000 | 4,066,000 | 4,189,000 | 4,077,000 | 4,438,000 | 1,043,000 | 599,000 | 470,000 |
| Revenue (ttm) | US$ in thousands | 28,823,000 | 29,871,000 | 30,435,000 | 31,369,000 | 31,543,000 | 30,734,000 | 28,833,000 | 26,794,000 | 26,989,000 | 21,970,000 | 18,170,000 | 15,165,000 | 9,093,000 | 9,261,000 | 9,448,000 | 9,675,000 | 9,821,000 | 9,618,000 | 9,582,000 | 9,578,000 |
| Net profit margin | -0.70% | -5.96% | -6.75% | -5.90% | 3.87% | 6.15% | 11.93% | 14.95% | 8.10% | 11.11% | 5.90% | 2.02% | 5.61% | 43.90% | 44.34% | 42.14% | 45.19% | 10.84% | 6.25% | 4.91% |
December 31, 2023 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $-202,000K ÷ $28,823,000K
= -0.70%
Net profit margin measures the profitability of a company by indicating the percentage of revenue that translates into net income. For NRG Energy Inc., there has been significant variability in the net profit margin over the past eight quarters. In the most recent quarter, Q4 2023, the company reported a negative net profit margin of -0.89%, indicating that it incurred a net loss in relation to its revenue. This marks a deterioration from the previous quarter, Q3 2023, when the net profit margin was -6.07%.
Looking further back, the trend of declining profitability is evident as NRG Energy Inc. reported negative net profit margins in each of the past four quarters. The company's performance contrasts with the same period a year ago, Q4 2022, when it achieved a positive net profit margin of 3.87%. This highlights a significant decrease in profitability over the past year.
The declining net profit margin could be a cause for concern as it may indicate inefficiencies in cost management, pricing strategies, or declining revenue. Investors and stakeholders may monitor NRG Energy Inc.'s efforts to improve profitability through measures such as cost-cutting initiatives, revenue growth strategies, or operational efficiencies. Further analysis of the company's financial performance and strategic initiatives is essential to understand the factors driving the trend in net profit margin.
Peer comparison
Dec 31, 2023