NRG Energy (FRA:NRA) ROCE %

: 18.88% (As of Dec. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. NRG Energy's annualized ROCE % for the quarter that ended in Dec. 2023 was 18.88%.

NRG Energy ROCE % Historical Data

The historical data trend for NRG Energy's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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NRG Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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13.17

9.63

24.47

13.65

2.74

NRG Energy Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															-29.20	-34.12	11.32	12.29	18.88

NRG Energy ROCE % Calculation

NRG Energy's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	416.318	/	( ( (27513.824 - 12255.008)	+	(23876.846 - 8711.5) )	/ 2 )
	=	416.318	/	( (15258.816	+	15165.346)	/ 2 )
	=	416.318	/	15212.081
	=	2.74 %

NRG Energy's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	3110.464	/	( ( (26151.67 - 8367.41)	+	(23876.846 - 8711.5) )	/ 2 )
	=	3110.464	/	( ( 17784.26	+	15165.346 )	/ 2 )
	=	3110.464	/	16474.803
	=	18.88 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

NRG Energy (FRA:NRA) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

NRG Energy ROCE % Related Terms

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NRG Energy (FRA:NRA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » NRG Energy Inc (FRA:NRA) » Definitions » ROCE %

Traded in Other Exchanges

NRG:USA NRA:Germany N1RG34:Brazil

Address

910 Louisiana Street, Houston, TX, USA, 77002

Website

https://www.nrg.com

NRG Energy is one of the largest retail energy providers in the U.S., with 5.5 million customers. Its 2023 acquisition of Vivint Smart Home adds 1.9 million home services customers. NRG also is one of the largest U.S. independent power producers, with 13 gigawatts of coal, gas, and oil power generation capacity primarily in Texas. NRG exited Chapter 11 bankruptcy as a stand-alone entity in December 2003.

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