Entergy Corporation (ETR)

Fixed asset turnover

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
Revenue (ttm) US$ in thousands 11,879,650 11,862,150 12,068,570 11,960,980 12,147,410 12,695,110 13,318,210 13,867,380 13,764,240 13,214,200 12,349,110 11,775,980 11,742,900 11,390,540 10,940,580 10,531,300 10,113,640 10,205,850 10,442,860 10,696,280
Property, plant and equipment US$ in thousands — — — — — 2,716,200 42,858,700 2,557,920 2,210,580 41,718,800 41,572,300 41,551,200 1,869,540 41,541,700 1,737,180 39,022,000 38,852,800 38,001,000 36,307,100 35,781,100
Fixed asset turnover — — — — — 4.67 0.31 5.42 6.23 0.32 0.30 0.28 6.28 0.27 6.30 0.27 0.26 0.27 0.29 0.30

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,879,650K ÷ $—K
= —

Entergy Corporation's fixed asset turnover ratio measures the efficiency with which the company generates revenue from its investment in fixed assets. A higher fixed asset turnover ratio generally indicates better utilization of fixed assets to generate sales.

Analyzing the fixed asset turnover data provided, we observe fluctuations in the ratio over time. The ratios reported were relatively low during the periods from March 31, 2020, to September 30, 2021, ranging from 0.26 to 0.30. This suggests that Entergy Corporation may have faced challenges in effectively utilizing its fixed assets to generate revenue during this time.

However, a significant surge is noticed in the fixed asset turnover ratio in the subsequent periods from June 30, 2021, to September 30, 2022, and again from December 31, 2022, to March 31, 2023, where the ratios spiked to exceptionally high levels of 6.23 to 6.30. Such a sudden and drastic increase in the ratio may be indicative of a potential divestiture or revaluation of assets, which significantly boosted revenue generation relative to the book value of fixed assets.

Following this peak, the fixed asset turnover ratio experienced a decline from June 30, 2023, to September 30, 2023, declining to 0.31 and further dropping to 4.67 by the end of December 31, 2023. This downward trend could imply inefficiencies or underutilization of fixed assets compared to the revenue generated during these periods.

The data provided for the following periods, starting from March 31, 2024, shows no values reported, suggesting a lack of information for further analysis beyond this date.

In summary, Entergy Corporation's fixed asset turnover ratio exhibited fluctuations over the period analyzed, with both low and exceptionally high values observed. Further analysis and contextual information would be necessary to fully understand the factors driving these fluctuations in the company's fixed asset turnover performance.