NRG Energy Inc. (NRG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 |
| Debt-to-capital 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 |
| 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 |
| Financial leverage ratio | 9.69 | 9.41 | 7.11 | 7.70 | 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 |
NRG Energy Inc. has exhibited a consistent trend of low solvency ratios over the reported periods. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all maintained a value of 0.00 throughout the entire timeframe, indicating that the company has not relied heavily on debt to finance its operations relative to its assets and equity.
However, the financial leverage ratio has shown a more fluctuating pattern, starting at a relatively high value of 8.35 on March 31, 2020, dipping to as low as 5.86 on March 31, 2022, and then gradually increasing to 9.69 by December 31, 2024. This ratio measures the proportion of a company's debt to its equity and indicates the extent to which the company is using debt to finance its assets.
Overall, NRG Energy Inc. seems to have a conservative approach to leverage, as evidenced by the consistently low debt-related ratios. However, the fluctuating trend in the financial leverage ratio suggests that the company may have adjusted its capital structure over the years, with a slight increase in leverage towards the later periods. This could be a strategic decision to optimize its capital structure or a response to changing market conditions.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.55 | 3.15 | 5.33 | 4.42 | 0.72 | -2.86 | -4.04 | -4.02 | 4.99 | 6.80 | 11.29 | 12.57 | 6.89 | 7.86 | 4.15 | 1.96 | 2.83 | 3.70 | 3.94 | 3.23 |
Based on the data provided for NRG Energy Inc., the interest coverage ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024.
The interest coverage ratio indicates the company's ability to meet its interest payment obligations on its outstanding debt. A higher ratio implies a stronger ability to cover interest expenses.
Initially, from March 31, 2020, to March 31, 2021, the interest coverage ratio decreased gradually from 3.23 to 1.96, indicating a potential decrease in the company's ability to cover its interest expenses. However, from June 30, 2021, to June 30, 2022, there was a significant improvement as the ratio improved to 11.29, suggesting better coverage of interest expenses.
Subsequently, the interest coverage ratio experienced fluctuations, dropping in the third quarter of 2022 to 6.80 before increasing again to 5.33 by June 30, 2024. The ratio stayed relatively stable around the 4-5 range towards the end of the period, reflecting a moderate ability to cover interest payments.
It is important to note the negative ratios observed in the first half of 2023, indicating that the company may have faced challenges in meeting its interest obligations during that period. However, the ratio recovered and became positive from March 31, 2024.
In conclusion, the analysis of NRG Energy Inc.'s interest coverage ratio shows variability over the period, with fluctuations in the company's ability to cover interest payments. Investors and stakeholders should continue to monitor this ratio to assess the company's financial health and ability to meet its debt obligations.