NRG Energy Inc. (NRG)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 454,000 | -1,682,000 | -2,075,000 | -1,853,000 | 2,080,000 | 2,884,000 | 4,981,000 | 5,794,000 | 3,344,000 | 3,799,000 | 1,954,000 | 881,000 | 1,163,000 | 1,327,000 | 1,364,000 | 1,159,000 | 1,517,000 | 1,480,000 | 1,061,000 | 956,000 |
| Long-term debt | US$ in thousands | — | 10,741,000 | 10,737,000 | 11,332,000 | 7,976,000 | 7,974,000 | 7,970,000 | 8,026,000 | 7,966,000 | 7,957,000 | 8,712,000 | 8,705,000 | 8,691,000 | 5,792,000 | 5,810,000 | 5,807,000 | 5,803,000 | — | — | — |
| 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 |
| Return on total capital | 15.62% | -11.80% | -14.75% | -12.86% | 17.62% | 22.01% | 37.54% | 44.38% | 28.91% | 31.57% | 17.36% | 8.62% | 11.21% | 17.18% | 18.04% | 15.78% | 20.28% | — | — | — |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $454,000K ÷ ($—K + $2,906,000K)
= 15.62%
NRG Energy Inc.'s return on total capital fluctuated over the past eight quarters. The return on total capital was negative in the most recent quarters, with a decrease from -7.56% in Q4 2023 to -11.90% in Q3 2023 and further to -14.26% in Q2 2023. This suggests that the company may be experiencing challenges generating returns on the capital it has deployed in its operations during these periods.
In contrast, the return on total capital was positive in the preceding quarters, reaching as high as 47.52% in Q1 2022. This indicates that the company was more effective in utilizing its capital to generate profits during that time. Overall, the return on total capital has exhibited volatility, indicating fluctuations in the company's ability to efficiently utilize its total capital to generate returns for its investors.
Peer comparison
Dec 31, 2023