Entergy Corporation (ETR)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	4,396,240	3,660,870	4,095,030	3,623,600	4,559,900
Total current liabilities	US$ in thousands	5,865,060	6,396,490	6,369,450	6,190,740	7,060,510
Current ratio		0.75	0.57	0.64	0.59	0.65

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,396,240K ÷ $5,865,060K
= 0.75

The current ratio, a measure of a company's ability to cover its short-term liabilities with its short-term assets, indicated a declining trend for Entergy Corporation based on the data provided. As of December 31, 2020, the current ratio stood at 0.65, which means the company had $0.65 in current assets for every dollar of current liabilities. Subsequently, the ratio decreased to 0.59 by December 31, 2021, and then improved slightly to 0.64 by December 31, 2022. However, by December 31, 2023, the current ratio dropped to 0.57, signaling potential challenges in meeting short-term obligations. The ratio then increased to 0.75 by December 31, 2024, showing some improvement in liquidity position. Overall, the fluctuation in the current ratio over the years suggests varying levels of liquidity and potential considerations for managing short-term financial obligations by Entergy Corporation.