NRG Energy Inc. (NRG)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,906,000 | 3,828,000 | 3,600,000 | 1,680,000 | 1,678,000 |
| Debt-to-capital ratio | 0.00 | 0.68 | 0.69 | 0.84 | 0.78 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,906,000K)
= 0.00
The debt-to-capital ratio of NRG Energy Inc. has fluctuated over the past five years. In 2023, the ratio stood at 0.79, representing an increase from the previous year's 0.68. This indicates that a higher proportion of NRG Energy's capital structure was financed by debt in 2023. Despite this increase, the ratio remains below the levels seen in 2020 and 2019, where it was 0.84 and 0.78, respectively.
A debt-to-capital ratio of 0.79 suggests that NRG Energy relied on debt financing for approximately 79% of its capital structure in 2023. While high levels of debt can indicate increased financial risk, it can also be advantageous if the company can generate returns greater than the cost of debt. It is essential for investors and stakeholders to monitor changes in the debt-to-capital ratio to assess NRG Energy's financial leverage and risk profile.
Peer comparison
Dec 31, 2023