NRG Energy Inc. (NRG)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 26,038,000 | 27,910,000 | 28,991,000 | 29,696,000 | 29,146,000 | 32,243,000 | 34,335,000 | 29,477,000 | 23,182,000 | 27,965,000 | 21,619,000 | 19,241,000 | 14,902,000 | 12,225,000 | 12,337,000 | 12,822,000 | 12,531,000 | 9,527,000 | 9,171,000 | 9,530,000 |
| 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 |
| Financial leverage ratio | 8.96 | 7.93 | 8.70 | 9.64 | 7.61 | 6.29 | 6.48 | 5.86 | 6.44 | 6.86 | 8.50 | 12.68 | 8.87 | 6.32 | 7.05 | 8.35 | 7.47 | — | — | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $26,038,000K ÷ $2,906,000K
= 8.96
The financial leverage ratio of NRG Energy Inc. has shown fluctuations over the past eight quarters. The ratio ranged from a low of 5.86 in Q1 2022 to a high of 9.64 in Q1 2023. Generally, the trend indicates an upward movement, starting from 6.29 in Q3 2022 and peaking at 9.64 in Q1 2023, before slightly decreasing to 8.96 in Q4 2023.
A financial leverage ratio above 1 indicates that a company relies more on debt financing than equity, while a ratio below 1 signifies a larger reliance on equity. NRG Energy Inc.'s ratios consistently exceed 1, indicating a substantial amount of debt in its capital structure.
The increase in the financial leverage ratio could indicate a higher level of financial risk for the company, as higher leverage makes the company more susceptible to economic downturns or interest rate hikes. It may also suggest that the company is using debt to finance its expansion or operations.
Further analysis of the company's debt structure and overall financial health would be needed to fully understand the implications of these changes in the financial leverage ratio.
Peer comparison
Dec 31, 2023