Entergy Corporation (ETR)

Short-term

Turnover ratios

Entergy Corp.'s activity ratios over the past eight quarters show various trends in its operational efficiency:

1. Inventory Turnover: Entergy's inventory turnover ratio has fluctuated over the period, ranging from a low of 2.34 to a high of 3.98. Generally, a higher inventory turnover indicates efficient management of inventory levels. The company has shown improvement in this ratio, with a peak in Q1 2023 and a slight decline in subsequent quarters.

2. Receivables Turnover: The receivables turnover ratio reflects how quickly the company collects payments from customers. Entergy's ratio has varied, with the highest turnover recorded in Q1 2023. A higher ratio suggests effective credit and collection policies, and the company has demonstrated consistent performance in this aspect.

3. Payables Turnover: The payables turnover ratio measures how quickly a company pays its suppliers. Entergy's ratio has shown fluctuation, with Q1 2023 recording the highest turnover. A higher payables turnover can indicate favorable credit terms with suppliers, but variations in this ratio could also signal changes in payment practices.

4. Working Capital Turnover: Unfortunately, the data for Entergy's working capital turnover ratio is missing for all quarters. This ratio helps assess the efficiency of utilizing working capital to generate sales revenue. Without this data, a comprehensive evaluation of the company's working capital management efficiency is not possible.

In summary, Entergy Corp. has shown varying levels of efficiency in managing its inventory, accounts receivable, and accounts payable over the analyzed quarters. To further assess its operational performance, additional information on working capital turnover would be needed.

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Average number of days

To analyze Entergy Corp.'s activity ratios based on the provided data:

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows an increase in the number of days it takes for Entergy Corp. to sell its inventory from Q1 2023 to Q4 2023.
- The company has seen a significant rise in its DOH from Q1 2023 (93.71 days) to Q4 2023 (156.06 days), indicating that inventory turnover has slowed down.
- Entergy Corp. may be experiencing challenges in managing its inventory efficiently, which could lead to higher carrying costs and potential obsolescence risk.

2. Days of Sales Outstanding (DSO):
- The trend in DSO indicates fluctuations in the average number of days it takes for Entergy Corp. to collect payment from its customers.
- There is a decrease in DSO from Q3 2023 (49.24 days) to Q1 2023 (32.66 days), suggesting an improvement in the company's accounts receivable turnover.
- However, the DSO in Q4 2023 (41.87 days) has increased compared to Q1 2023, indicating a potential delay in collecting receivables.

3. Number of Days of Payables:
- Entergy Corp.'s days of payables show variability in the number of days it takes the company to pay its suppliers.
- The trend in days of payables has fluctuated between quarters, with notable increases in Q4 2022 (122.55 days) and Q2 2022 (171.05 days).
- A longer number of days of payables could imply an extended period in which Entergy Corp. is managing its payables, potentially affecting relationships with suppliers.

Overall, Entergy Corp. should focus on optimizing its inventory management to improve inventory turnover, monitor collections to reduce DSO, and strike a balance in managing payables efficiently to enhance its overall working capital management.

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Long-term

Entergy Corp.'s long-term activity ratios provide insight into the efficiency of the company in managing its fixed assets and total assets to generate revenue.

The fixed asset turnover ratio has been relatively consistent over the quarters, ranging from 0.27 to 0.33. This indicates that Entergy is generating approximately $0.27 to $0.33 of revenue for every dollar invested in fixed assets. The gradual increase in this ratio from Q4 2022 to Q1 2023 suggests a slightly improving efficiency in utilizing fixed assets to generate sales.

In terms of total asset turnover, the company has shown a similar trend, with ratios ranging from 0.20 to 0.23. This implies that Entergy is generating about $0.20 to $0.23 in revenue for every dollar of total assets. The consistent performance in this ratio indicates stable efficiency in utilizing both fixed and current assets to generate sales.

Overall, the long-term activity ratios for Entergy Corp. suggest that the company is effectively utilizing its assets to generate revenue. However, there may be potential for further improvement in efficiency, particularly in terms of generating more revenue per dollar of fixed assets. It would be beneficial for the company to continue monitoring and optimizing its asset management strategies to enhance overall operational efficiency.