NRG Energy Inc. (NRG)
Debt-to-equity ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,478,000 | 2,520,000 | 3,623,000 | 3,297,000 | 2,906,000 | 3,518,000 | 3,332,000 | 3,080,000 | 3,828,000 | 5,130,000 | 5,300,000 | 5,030,000 | 3,600,000 | 4,078,000 | 2,544,000 | 1,517,000 | 1,680,000 | 1,934,000 | 1,750,000 | 1,536,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,478,000K
= 0.00
Based on the provided data, NRG Energy Inc. has consistently maintained a debt-to-equity ratio of 0.00 across the quarters from March 31, 2020, to December 31, 2024. A debt-to-equity ratio of 0.00 indicates that the company has no debt or a very minimal amount of debt compared to its equity. This suggests that NRG Energy Inc. relies more on equity financing rather than debt for its operations and investment activities.
Having a low or zero debt-to-equity ratio can be beneficial for a company as it signifies a lower financial risk and potential for financial distress. It also indicates that the company has a healthier financial position and may be viewed more favorably by investors and creditors.
However, it is essential to note that a zero debt-to-equity ratio may also mean that the company is not leveraging debt effectively to amplify returns. While a conservative approach to debt can be advantageous, a certain level of debt could be beneficial for the company to take advantage of tax benefits and leverage for growth opportunities.
In conclusion, NRG Energy Inc.'s consistent zero debt-to-equity ratio reflects a conservative financial strategy with minimal reliance on debt for funding its operations and investments. This approach may support the company's financial stability and reputation but could potentially limit its growth potential compared to competitors who leverage debt more strategically.
Peer comparison
Dec 31, 2024