Entergy Corporation (ETR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.42 | 4.23 | 6.38 | 5.74 | 4.98 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — |
Based on the provided data for Entergy Corporation, we observe the following activity ratios:
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. Entergy Corporation's inventory turnover has shown an increasing trend over the years:
- In 2020, the ratio was 4.98
- In 2021, it improved to 5.74
- In 2022, it further increased to 6.38
- In 2023, there was a slight decrease to 4.23
- Lastly, in 2024, it dropped to 3.42
2. Receivables Turnover:
- The receivables turnover ratio indicates how efficiently a company collects its accounts receivable. Unfortunately, the data provided indicates that Entergy Corporation did not report its receivables turnover for any of the years from 2020 to 2024.
3. Payables Turnover:
- The payables turnover ratio reflects how quickly a company pays its suppliers. The data provided does not include information on payables turnover for Entergy Corporation for the years 2020 to 2024.
4. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate sales. The provided data does not contain information on the working capital turnover for Entergy Corporation for the years 2020 to 2024.
In summary, while Entergy Corporation shows an improving trend in inventory turnover, there is a lack of data for receivables turnover, payables turnover, and working capital turnover. This limited data prevents a comprehensive analysis of the company's overall activity efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 106.83 | 86.29 | 57.23 | 63.54 | 73.26 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Entergy Corporation's Days of Inventory on Hand (DOH) has shown a decreasing trend over the years, dropping from 73.26 days on December 31, 2020, to 63.54 days on December 31, 2021, and reaching as low as 57.23 days on December 31, 2022. However, there was a significant increase in inventory holding period to 106.83 days on December 31, 2024, which indicates a potential inefficiency in managing inventory levels.
The Days of Sales Outstanding (DSO) and Number of Days of Payables data are unavailable for analysis, as the values are not provided for any of the years between December 31, 2020, and December 31, 2024. Without this information, it is challenging to assess the efficiency of Entergy Corporation in collecting receivables and managing payables.
In conclusion, while Entergy Corporation has shown improvement in its inventory management efficiency in the earlier years, the significant increase in the Days of Inventory on Hand in 2024 raises concerns about potential inventory management challenges that may need to be addressed. Further information on sales outstanding and payables would provide a more comprehensive insight into the company's overall activity ratios.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 6.23 | 6.28 | 0.26 |
| Total asset turnover | 0.18 | 0.20 | 0.23 | 0.20 | 0.17 |
Entergy Corporation's Fixed Asset Turnover ratio increased significantly from 0.26 in 2020 to 6.28 in 2021 and remained stable at 6.23 in 2022, which indicates a substantial improvement in utilizing fixed assets to generate sales. The ratio suggests that the company efficiently generated revenue in comparison to its investment in fixed assets during these years.
On the other hand, the Total Asset Turnover ratio shows a fluctuating trend, increasing from 0.17 in 2020 to 0.23 in 2022, then slightly declining to 0.20 in 2023 and 0.18 in 2024. This ratio signifies the company's overall efficiency in generating sales from all its assets. A higher Total Asset Turnover ratio generally indicates better asset utilization, but the fluctuations in Entergy Corporation's ratio suggest varying levels of operational efficiency in utilizing its total assets to generate revenue over the years.