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.