NRG Energy Inc. (NRG)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 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 | 1,678,000 | -1,552,000 | -1,629,000 | -1,520,000 |
| Debt-to-equity ratio | 0.00 | 3.05 | 3.22 | 3.68 | 2.08 | 1.55 | 1.50 | 1.60 | 2.21 | 1.95 | 3.42 | 5.74 | 5.17 | 2.99 | 3.32 | 3.78 | 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 for NRG Energy Inc. has been fluctuating over the past eight quarters, ranging from a low of 1.52 in Q2 2022 to a high of 3.99 in Q1 2023. This ratio indicates the proportion of debt used to finance the company's assets relative to shareholders' equity. A higher ratio suggests that the company relies more on debt financing, which can indicate higher financial risk.
The company experienced a significant increase in its debt-to-equity ratio in Q1 2023, reaching 3.99, signifying a higher level of debt relative to equity compared to previous quarters. This could raise concerns about the company's ability to meet its debt obligations, especially if earnings decline.
On the other hand, the ratios in Q2 2022 and Q3 2022 were relatively lower at 1.52 and 1.57, indicating a more conservative approach to debt financing during that period. This could suggest a lower financial risk profile and possibly more stable financial health.
Overall, the trend of increasing debt-to-equity ratios over the past year may indicate a shift towards more aggressive leverage, which could increase the company's financial vulnerability to economic downturns or interest rate fluctuations. Further analysis of the company's overall financial health and profitability would be necessary to assess the implications of these changes in the debt-to-equity ratio accurately.
Peer comparison
Dec 31, 2023