NRG Energy Inc. (NRG)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	2,424,000	384,000	2,018,000	3,341,000	1,105,000
Total assets	US$ in thousands	24,022,000	26,038,000	29,146,000	23,182,000	14,902,000
Operating ROA		10.09%	1.47%	6.92%	14.41%	7.42%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $2,424,000K ÷ $24,022,000K
= 10.09%

Operating return on assets (Operating ROA) is a key financial ratio that measures a company's operating profitability relative to its total assets. In the case of NRG Energy Inc., the trend in Operating ROA over the past five years shows some fluctuations:

- As of December 31, 2020, NRG Energy Inc. had an Operating ROA of 7.42%, indicating that the company generated approximately $0.074 in operating income for every dollar of assets.
- By December 31, 2021, NRG Energy Inc.'s Operating ROA improved significantly to 14.41%, signaling a notable increase in the company's operating profitability relative to its assets.
- However, by December 31, 2022, the Operating ROA declined to 6.92%, suggesting a decrease in the company's efficiency in generating operating income from its assets.
- The trend continued to decline as of December 31, 2023, with an Operating ROA of 1.47%, reflecting a further decrease in profitability relative to its asset base.
- The most recent data point as of December 31, 2024, shows NRG Energy Inc. with an Operating ROA of 10.09%, indicating a recovery in the company's operating profitability compared to the previous year.

Overall, the fluctuation in NRG Energy Inc.'s Operating ROA over the five-year period suggests varying levels of efficiency in utilizing its assets to generate operating income. Investors and stakeholders may want to further investigate the factors contributing to these fluctuations to assess the company's operational performance and financial health.