NRG Energy Inc. (NRG)
Debt-to-equity 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-equity ratio | 0.00 | 2.08 | 2.21 | 5.17 | 3.46 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,906,000K
= 0.00
The debt-to-equity ratio of NRG Energy Inc. has shown fluctuations over the past five years. As of December 31, 2023, the ratio stands at 3.70, which indicates that the company relies more on debt financing compared to equity. When compared to the previous year, there has been a notable increase from 2.10 to 3.70, suggesting a significant rise in the proportion of debt in the company's capital structure.
Looking further back, in 2021, the debt-to-equity ratio was 2.21, showing a slight increase compared to the previous year. The year 2020 recorded a much higher ratio of 5.17, signifying a considerable level of debt relative to equity in the company's financial structure. In 2019, the ratio was 3.55, indicating a moderate reliance on debt financing.
The rising trend in the debt-to-equity ratio from 2021 to 2023 may raise concerns about the company's financial leverage and its ability to meet debt obligations. Investors and stakeholders may closely monitor this ratio to assess the company's risk profile and financial health in the future.
Peer comparison
Dec 31, 2023