NRG Energy Inc. (NRG)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	2,478,000	2,906,000	3,828,000	3,600,000	1,680,000
ROE		45.40%	-6.95%	31.90%	60.75%	30.36%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,125,000K ÷ $2,478,000K
= 45.40%

The return on equity (ROE) of NRG Energy Inc. has shown fluctuations over the years. In December 31, 2020, the ROE was reported at 30.36%, which increased significantly to 60.75% by the end of December 31, 2021. This sharp rise in ROE indicates that the company was able to generate more profit from shareholders' equity in the following year.

However, in December 31, 2022, the ROE decreased to 31.90%, reflecting a decline in the profitability of the company relative to its equity. This could be attributed to various factors such as changes in operating efficiency, financial leverage, or net income.

By the end of December 31, 2023, the ROE turned negative, at -6.95%, indicating that the company incurred a net loss in that period. This negative ROE suggests that the company's net income was not sufficient to cover the shareholders' equity, which raises concerns about profitability and operational performance.

Nevertheless, in December 31, 2024, the ROE recovered to 45.40%, showing an improvement in the company's ability to generate profit from shareholders' equity compared to the previous year. This positive trend indicates potential recovery and financial stability for NRG Energy Inc.

Overall, the fluctuation in NRG Energy Inc.'s ROE over the years suggests varying degrees of profitability and operational performance. Investors and stakeholders may need to closely monitor the company's financial health and management strategies to assess its long-term sustainability and growth prospects.