NRG Energy Inc. (NRG)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,125,000 | 964,000 | 2,074,000 | 1,644,000 | -202,000 | -1,779,000 | -2,055,000 | -1,850,000 | 1,221,000 | 1,889,000 | 3,440,000 | 4,005,000 | 2,187,000 | 2,441,000 | 1,072,000 | 307,000 | 510,000 | 4,066,000 | 4,189,000 | 4,077,000 |
| Total stockholders’ equity | US$ in thousands | 2,478,000 | 2,520,000 | 3,623,000 | 3,297,000 | 2,906,000 | 3,518,000 | 3,332,000 | 3,080,000 | 3,828,000 | 5,130,000 | 5,300,000 | 5,030,000 | 3,600,000 | 4,078,000 | 2,544,000 | 1,517,000 | 1,680,000 | 1,934,000 | 1,750,000 | 1,536,000 |
| ROE | 45.40% | 38.25% | 57.25% | 49.86% | -6.95% | -50.57% | -61.67% | -60.06% | 31.90% | 36.82% | 64.91% | 79.62% | 60.75% | 59.86% | 42.14% | 20.24% | 30.36% | 210.24% | 239.37% | 265.43% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,125,000K ÷ $2,478,000K
= 45.40%
NRG Energy Inc.'s return on equity (ROE) has shown significant fluctuations over the past few years. The ROE was exceptionally high in the first half of 2020, reaching above 200%, indicating strong profitability relative to shareholder equity. However, by the end of the same year, the ROE dropped to 30.36%, showing a sharp decline in profitability.
From 2021 to mid-2022, NRG Energy Inc.'s ROE fluctuated within a moderate range, with values ranging from 20.24% to 79.62%. This period reflected some volatility, but overall the company maintained a relatively healthy return on equity during this time.
Towards the end of 2022, the ROE started declining consistently, dropping to below 40% in the following quarters. By the end of 2023, the company experienced negative returns on equity, indicating that it was not generating sufficient profits relative to shareholders' investments.
However, in the first half of 2024, NRG Energy Inc.'s ROE improved significantly, reaching above 50%, showing a partial recovery from the previous negative trends. The company's return on equity at the end of 2024 stood at 45.40%, demonstrating a moderate level of profitability compared to shareholder equity.
Overall, NRG Energy Inc.'s ROE analysis indicates a history of significant fluctuations, with both high peaks and low troughs, showcasing the company's changing profitability performance over the analyzed period.
Peer comparison
Dec 31, 2024