Entergy Corporation (ETR)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2019	Dec 31, 2018
Revenue	US$ in thousands	11,209,600	12,477,900	10,993,900	10,116,300	10,266,400
Property, plant and equipment	US$ in thousands	418,546	366,405	357,576	332,864	304,382
Fixed asset turnover		26.78	34.05	30.75	30.39	33.73

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,209,600K ÷ $418,546K
= 26.78

Entergy Corp.'s fixed asset turnover ratio has fluctuated over the past five years. The ratio declined from 0.31 in 2019 to 0.26 in 2020, indicating that the company generated $0.26 in revenue for every dollar invested in fixed assets in 2020. This decrease suggests a less efficient utilization of fixed assets to generate sales.

However, in 2021, the fixed asset turnover ratio slightly increased to 0.28, signaling a moderate improvement in efficiency compared to the previous year. This uptick in the ratio indicates that Entergy Corp. generated $0.28 in revenue for every dollar invested in fixed assets in 2021.

In 2022, the fixed asset turnover ratio further improved to 0.32, reaching the highest level in the past five years. This suggests that the company effectively utilized its fixed assets to generate sales, with $0.32 in revenue generated for each dollar invested in fixed assets.

By the end of 2023, the fixed asset turnover ratio decreased to 0.27, indicating a slight decline in efficiency compared to the previous year. Nonetheless, this ratio still reflects that Entergy Corp. continues to generate a significant amount of revenue relative to its investment in fixed assets.

Overall, the varying fixed asset turnover ratios demonstrate fluctuations in the company's efficiency in generating sales from its fixed assets over the five-year period, with some years showing improvements while others exhibiting slight declines.