NRG Energy Inc. (NRG)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	384,000	-1,770,000	-2,175,000	-1,951,000	2,018,000	2,856,000	5,019,000	5,822,000	3,341,000	3,804,000	1,878,000	805,000	1,105,000	1,330,000	1,477,000	1,313,000	1,290,000	1,130,000	988,000	842,000
Total assets	US$ in thousands	26,038,000	27,910,000	28,991,000	29,696,000	29,146,000	32,243,000	34,335,000	29,477,000	23,182,000	27,965,000	21,619,000	19,241,000	14,902,000	12,225,000	12,337,000	12,822,000	12,531,000	9,527,000	9,171,000	9,530,000
Operating ROA		1.47%	-6.34%	-7.50%	-6.57%	6.92%	8.86%	14.62%	19.75%	14.41%	13.60%	8.69%	4.18%	7.42%	10.88%	11.97%	10.24%	10.29%	11.86%	10.77%	8.84%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $384,000K ÷ $26,038,000K
= 1.47%

The operating return on assets (operating ROA) for NRG Energy Inc. has shown a declining trend over the past eight quarters. In Q1 2022, the operating ROA was at its highest point, standing at 20.98%. However, since then, there has been a consistent decrease in operating ROA, reaching its lowest point at -7.61% in Q2 2023.

This decline in operating ROA indicates that NRG Energy Inc. may be facing challenges in generating operating income relative to its total assets. A negative operating ROA implies that the company is experiencing operating losses. It is essential for NRG Energy Inc. to address the factors contributing to this negative trend in order to improve its operational efficiency and profitability.