Entergy Corporation (ETR)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 859,703 132,548 224,164 442,559 1,759,100
Short-term investments US$ in thousands — 69,494 108,874 270,947 1,630,250
Total current liabilities US$ in thousands 5,865,060 6,396,490 6,369,450 6,190,740 7,060,510
Cash ratio 0.15 0.03 0.05 0.12 0.48

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($859,703K + $—K) ÷ $5,865,060K
= 0.15

The cash ratio for Entergy Corporation has seen a downward trend from 0.48 on December 31, 2020, to 0.12 on December 31, 2021, further decreasing to 0.05 on December 31, 2022, and eventually dropping to 0.03 on December 31, 2023. However, there was a slight improvement to 0.15 on December 31, 2024. This decreasing trend indicates that the company may be facing challenges in maintaining sufficient cash reserves to cover its short-term liabilities. It is important for Entergy Corporation to closely monitor its cash position and consider strategies to improve liquidity in order to meet its financial obligations effectively.