NRG Energy Inc. (NRG)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,125,000 | -202,000 | 1,221,000 | 2,187,000 | 510,000 |
| Total assets | US$ in thousands | 24,022,000 | 26,038,000 | 29,146,000 | 23,182,000 | 14,902,000 |
| ROA | 4.68% | -0.78% | 4.19% | 9.43% | 3.42% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,125,000K ÷ $24,022,000K
= 4.68%
The return on assets (ROA) of NRG Energy Inc. has experienced fluctuations over the years. The ROA was 3.42% on December 31, 2020, showing a moderate level of profitability in utilizing its assets efficiently. Subsequently, there was a significant improvement in ROA to 9.43% by December 31, 2021, indicating a commendable increase in the company's ability to generate earnings relative to its assets.
However, the ROA declined to 4.19% by December 31, 2022, signaling a reduction in profitability compared to the previous year. This trend continued with a negative ROA of -0.78% by December 31, 2023, which indicates that the company incurred losses in generating earnings from its assets.
Nevertheless, there was a recovery in ROA to 4.68% by December 31, 2024, suggesting an improvement in asset utilization efficiency and profitability. Overall, the fluctuating ROA figures reflect variations in NRG Energy Inc.'s ability to generate returns from its assets, indicating the need for careful assessment and strategic decision-making to enhance profitability and efficiency in the future.
Peer comparison
Dec 31, 2024