Entergy Corporation (ETR)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2019	Dec 31, 2018
Cash and cash equivalents	US$ in thousands	132,548	224,164	442,559	425,722	480,975
Short-term investments	US$ in thousands	0	0	0	1,412,000	2,075,000
Total current liabilities	US$ in thousands	6,396,490	6,369,450	6,190,740	5,620,460	5,443,540
Cash ratio		0.02	0.04	0.07	0.33	0.47

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($132,548K + $0K) ÷ $6,396,490K
= 0.02

The cash ratio of Entergy Corp. has shown some variability over the past five years. The cash ratio, which measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents, was at its peak in 2020 at 0.30, indicating that Entergy Corp. had $0.30 of cash for every $1 of current liabilities.

However, the cash ratio decreased in the following year, 2021, to 0.17, suggesting a lower level of liquidity compared to the previous year. The ratio further dropped in 2023 to 0.10, indicating a significant decrease in cash reserves relative to current liabilities.

It is worth noting that the cash ratio fluctuated between 2019 and 2022, with a mix of increases and decreases. The downward trend in the cash ratio from 2020 to 2023 may raise concerns about Entergy Corp.'s liquidity position and ability to meet its short-term obligations with its available cash resources.

Further analysis of the company's cash management practices and liquidity position may be needed to understand the reasons behind these fluctuations in the cash ratio and assess the potential implications for Entergy Corp.'s financial health.