Entergy Corporation (ETR)

Fixed asset turnover

		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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Revenue (ttm)	US$ in thousands	11,202,450	11,630,410	12,281,490	12,854,670	12,767,560	12,331,340	11,484,210	10,924,560	10,982,260	11,165,450	10,229,550	9,893,720	9,650,130	9,897,230	10,171,010	10,310,470	10,360,650	10,330,960	10,517,820	10,829,380
Property, plant and equipment	US$ in thousands	418,546	419,931	416,431	400,579	366,405	360,709	358,609	357,092	357,576	352,706	353,423	355,819	341,190	337,849	335,314	332,864	326,704	324,366	310,215	304,382
Fixed asset turnover		26.77	27.70	29.49	32.09	34.85	34.19	32.02	30.59	30.71	31.66	28.94	27.81	28.28	29.29	30.33	30.98	31.71	31.85	33.90	35.58

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,202,450K ÷ $418,546K
= 26.77

Entergy Corp.'s fixed asset turnover has shown a fluctuating trend over the past eight quarters. The ratio has ranged between 0.27 to 0.33, with a general increase from Q4 2022 to Q1 2023, followed by a slight decline in Q2 and Q3 2023. This indicates that the company is generating a relatively low amount of revenue per dollar of fixed assets, implying inefficiency in asset utilization.

A fixed asset turnover below 1 suggests that Entergy Corp. may not be efficiently utilizing its fixed assets to generate sales. The decreasing trend in the ratio could be a concern for investors and stakeholders as it may indicate potential issues with asset management or operational inefficiencies.

Further analysis and comparison with industry peers may help determine the underlying reasons for the fluctuation in the fixed asset turnover ratio and potential strategies for improving asset utilization efficiency within Entergy Corp.