NRG Energy Inc. (NRG)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 26,038,000 | 27,910,000 | 28,991,000 | 29,696,000 | 29,146,000 | 32,243,000 | 34,335,000 | 29,477,000 | 23,182,000 | 27,965,000 | 21,619,000 | 19,241,000 | 14,902,000 | 12,225,000 | 12,337,000 | 12,822,000 | 12,531,000 | 9,527,000 | 9,171,000 | 9,530,000 |
| Debt-to-assets ratio | 0.00 | 0.38 | 0.37 | 0.38 | 0.27 | 0.25 | 0.23 | 0.27 | 0.34 | 0.28 | 0.40 | 0.45 | 0.58 | 0.47 | 0.47 | 0.45 | 0.46 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $26,038,000K
= 0.00
The debt-to-assets ratio of NRG Energy Inc. has been relatively stable over the past eight quarters, ranging from 0.23 to 0.42. The ratio indicates the proportion of the company's assets financed by debt, with a higher ratio suggesting a higher level of debt relative to assets.
From Q1 2022 to Q4 2022, there was a noticeable increase in the debt-to-assets ratio from 0.27 to 0.28, followed by a significant jump to 0.41 in Q1 2023. This increase may indicate a higher reliance on debt financing during this period.
Subsequently, the ratio remained at elevated levels between 0.41 to 0.42 throughout Q2 to Q4 2023. It suggests that a significant portion of NRG Energy Inc.'s assets continue to be funded by debt, which may expose the company to higher financial risk, particularly in times of economic uncertainty or interest rate fluctuations.
Overall, while a moderate level of debt can be a common strategy for companies to finance operations and investments, it is essential for NRG Energy Inc. to closely monitor and manage its debt levels to ensure financial stability and sustainability in the long term.
Peer comparison
Dec 31, 2023