NRG Energy Inc. (NRG)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	24,022,000	26,038,000	29,146,000	23,182,000	14,902,000
Total stockholders’ equity	US$ in thousands	2,478,000	2,906,000	3,828,000	3,600,000	1,680,000
Financial leverage ratio		9.69	8.96	7.61	6.44	8.87

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $24,022,000K ÷ $2,478,000K
= 9.69

Based on the financial leverage ratio data provided for NRG Energy Inc. from December 31, 2020, to December 31, 2024, we observe fluctuations in the company's leverage position. The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and investments.

In December 2020, NRG Energy Inc.'s financial leverage ratio was relatively high at 8.87, indicating a significant dependency on debt. However, this ratio decreased to 6.44 by December 31, 2021, suggesting a reduction in the firm's reliance on debt for financing.

Subsequently, the financial leverage ratio increased to 7.61 by December 31, 2022, indicating a slight uptick in leverage. By the end of 2023, the ratio rose further to 8.96, reflecting increased debt usage compared to the previous year.

By December 31, 2024, NRG Energy Inc.'s financial leverage ratio reached 9.69, representing a significant reliance on debt to fund its operations and investments. This upward trend in the leverage ratio over the years may indicate a potential increase in financial risk for the company, as higher leverage levels could lead to higher interest expenses and solvency concerns.

Overall, NRG Energy Inc.'s financial leverage ratio has shown fluctuating patterns over the years, with periods of both decreasing and increasing leverage levels. Investors and stakeholders should closely monitor the company's leverage position to assess its financial health and risk profile.