NRG Energy Inc. (NRG)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 26,038,000 | 29,146,000 | 23,182,000 | 14,902,000 | 12,531,000 |
| Operating ROA | 1.47% | 6.92% | 14.41% | 7.42% | 10.29% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $384,000K ÷ $26,038,000K
= 1.47%
Operating ROA is a key financial ratio that measures a company's ability to generate operating profits relative to its total assets. In the case of NRG Energy Inc., the trend in operating ROA over the past five years has been volatile.
In 2023, NRG Energy Inc. reported a negative operating ROA of -4.03%, indicating that the company incurred operating losses relative to its total assets during that period. This negative performance may raise concerns about the company's operational efficiency and profitability.
Comparing to the previous years, NRG Energy Inc. showed a significant decline in operating ROA from 2021 (16.09%) to 2022 (7.63%), followed by a further drop in 2023. This decline suggests a deterioration in the company's ability to generate operating profits from its assets.
While NRG Energy Inc. experienced a fluctuating trend in operating ROA, it is essential for investors and stakeholders to monitor this ratio closely to assess the company's operational performance and efficiency in utilizing its assets to generate profits. Further analysis of the company's operating expenses, asset management, and revenue generation may provide insights into the factors influencing its operating ROA.
Peer comparison
Dec 31, 2023