Debt-to-Equity Ratio

The Debt-to-Equity Ratio compares a company’s total liabilities to its shareholders’ equity, measuring how much debt it uses to fund operations; a ratio of 4.75x means NRG has $4.75 in debt for every $1 of equity, indicating heavy reliance on borrowing.

This is far above the sector median of 0.73x, placing NRG in the 97th percentile among its peers, meaning nearly all competitors use less debt. The year-over-year and quarter-over-quarter changes are both listed as N/A, so no trend can be assessed from those data points. Without a trend, the only information is the high current leverage level, which suggests elevated financial risk because the company must generate enough cash to cover large debt payments. This risk profile supports the overall CAUTIOUS verdict: the combination of an extremely high ratio (relative to peers) and the absence of any improving trend reinforces caution about the stock’s financial stability.

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