NRG Energy Inc. (NRG)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	384,000	2,018,000	3,341,000	1,105,000	1,290,000
Revenue	US$ in thousands	28,823,000	31,543,000	26,989,000	9,093,000	9,821,000
Operating profit margin		1.33%	6.40%	12.38%	12.15%	13.14%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $384,000K ÷ $28,823,000K
= 1.33%

NRG Energy Inc.'s operating profit margin has exhibited some fluctuations over the past five years, as per the provided data. In 2023, the company recorded a negative operating profit margin of -3.64%, which indicates that the company's operating expenses surpassed its operating income, resulting in a loss at the operating level. This may raise concerns about the company's cost structure and operational efficiency in that particular year.

In contrast, NRG Energy Inc. experienced a positive trend in its operating profit margin from 2020 to 2022, with margins of 12.94% and 13.82%, respectively. These figures suggest that the company was able to effectively manage its operating expenses and generate a reasonable level of operating income relative to its net sales during those years.

However, a slight dip in the operating profit margin to 7.05% in 2022 followed by a more significant decrease to -3.64% in 2023 raises questions about the company's ability to maintain consistent profitability. Investors and stakeholders may want to further investigate the factors contributing to the decline in the operating profit margin in 2023 to assess the company's financial health and sustainability.