NRG Energy Inc. (NRG)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	7,976,000	7,966,000	8,691,000	5,803,000
Total assets	US$ in thousands	26,038,000	29,146,000	23,182,000	14,902,000	12,531,000
Debt-to-assets ratio		0.00	0.27	0.34	0.58	0.46

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $26,038,000K
= 0.00

The debt-to-assets ratio for NRG Energy Inc. over the past five years has shown some fluctuations. In 2023, the ratio stood at 0.41, indicating that NRG Energy financed approximately 41% of its assets through debt. This represented an increase from the previous year's ratio of 0.28.

In 2022, the ratio was at its lowest in the period at 0.28, suggesting that NRG Energy relied less on debt to fund its operations and investments compared to the other years. However, the ratio increased to 0.34 in 2021, indicating a higher level of debt utilization.

The highest ratio observed was in 2020 at 0.58, signifying that a significant portion of NRG Energy's assets was funded by debt that year. This was a substantial increase from the previous year's ratio of 0.47, showing a considerable uptrend in leveraging debt to support the company's asset base.

Overall, the fluctuating trend in NRG Energy's debt-to-assets ratio over the past five years suggests varying degrees of reliance on debt financing to support the company's asset structure. Investors and analysts may closely monitor changes in this ratio as it can reflect changes in the company's financial risk, capital structure, and overall solvency.