NRG Energy Inc. (NRG)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,309,000 | 2,190,000 | 3,489,000 | 2,845,000 | 458,000 | -1,650,000 | -2,051,000 | -1,858,000 | 2,080,000 | 2,884,000 | 4,981,000 | 5,794,000 | 3,344,000 | 3,798,000 | 1,911,000 | 845,000 | 1,138,000 | 1,434,000 | 1,529,000 | 1,283,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 93.18% | 86.90% | 96.30% | 86.29% | 15.76% | -46.90% | -61.55% | -60.32% | 54.34% | 56.22% | 93.98% | 115.19% | 92.89% | 93.13% | 75.12% | 55.70% | 67.74% | 74.15% | 87.37% | 83.53% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,309,000K ÷ ($—K + $2,478,000K)
= 93.18%
The return on total capital for NRG Energy Inc. has displayed fluctuations over the reported periods. It started at a high of 83.53% in March 2020, showing a trend of generally increasing returns through June 2021, where it peaked at 93.13%. However, there was a decline in returns in the following periods, notably dropping to 54.34% in December 2022. The returns turned negative in the first two quarters of 2023, indicating a period of underperformance relative to the total capital employed.
There was a notable recovery in the return on total capital in the subsequent periods, reaching 93.18% by December 2024. The increase in returns suggests an improvement in the efficiency of capital utilization by the company during this period. However, it is essential to investigate the factors contributing to the significant fluctuations in returns to assess the sustainability and underlying performance drivers of NRG Energy Inc.
Peer comparison
Dec 31, 2024