NRG Energy Inc. (NRG)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -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 | 4,438,000 | 1,043,000 | 599,000 | 470,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,678,000 | -1,552,000 | -1,629,000 | -1,520,000 |
| ROE | -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% | 264.48% | — | — | — |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-202,000K ÷ $2,906,000K
= -6.95%
NRG Energy Inc.'s return on equity (ROE) has demonstrated considerable variation over the past eight quarters. In Q4 2023, the company reported a negative ROE of -8.81%, which indicated a decline from the previous quarter's ROE of -51.53%. The downward trend in ROE continued throughout the year, with Q3, Q2, and Q1 2023 showing further decreases to -51.53%, -62.18%, and -60.06%, respectively.
This contrasts sharply with the positive ROE figures reported in the preceding quarters of 2022. In Q4 2022, NRG Energy Inc. achieved a robust ROE of 31.90%, which increased to 36.82% in Q3 2022, reached 64.91% in Q2 2022, and peaked at 79.62% in Q1 2022. This indicates a significant shift from profitability to losses in the span of a year.
The recent negative ROE figures indicate that NRG Energy Inc. may be facing challenges in generating profit from shareholders' equity. The declining trend raises questions about the company's efficiency in utilizing its equity to generate returns for its investors. Investors and stakeholders may need to closely monitor the company's performance and evaluate management's strategies to improve ROE in the future.
Peer comparison
Dec 31, 2023