Entergy Corporation (ETR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,660,870 | 4,095,030 | 3,623,600 | 3,045,990 | 2,958,060 |
| Total current liabilities | US$ in thousands | 6,396,490 | 6,369,450 | 6,190,740 | 5,620,460 | 5,443,540 |
| Current ratio | 0.57 | 0.64 | 0.59 | 0.54 | 0.54 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,660,870K ÷ $6,396,490K
= 0.57
The current ratio of Entergy Corp. has fluctuated over the past five years. In 2023, the current ratio stands at 0.57, a decrease from the previous year's ratio of 0.64. This indicates that the company's current assets may not be sufficient to cover its current liabilities, which could potentially pose liquidity challenges. It's worth noting that the current ratio has generally been below 1 in recent years, suggesting a potential risk of liquidity issues if current liabilities come due.
Entergy Corp. may need to closely monitor and manage its working capital to improve its current ratio and ensure it has enough liquid assets to meet its short-term obligations. Further analysis of its current assets and liabilities structure could provide insights into specific areas where improvements can be made to enhance liquidity and financial health.
Peer comparison
Dec 31, 2023