Entergy Corporation (ETR)

Current ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Total current assets US$ in thousands 4,396,240 5,217,810 4,934,160 4,494,170 3,660,870 5,329,660 4,692,610 5,266,240 4,095,030 5,509,800 4,795,410 3,839,000 3,623,600 4,232,670 3,794,710 4,788,550 4,559,900 4,062,800 3,547,000 3,973,950
Total current liabilities US$ in thousands 6,111,040 5,859,250 5,487,180 6,884,530 6,396,490 5,848,690 5,881,280 5,825,330 6,369,450 6,154,880 5,541,620 5,363,180 6,190,740 6,644,900 3,804,540 4,511,910 7,060,510 6,875,530 6,115,900 6,017,940
Current ratio 0.72 0.89 0.90 0.65 0.57 0.91 0.80 0.90 0.64 0.90 0.87 0.72 0.59 0.64 1.00 1.06 0.65 0.59 0.58 0.66

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,396,240K ÷ $6,111,040K
= 0.72

Entergy Corporation's current ratio has fluctuated over the past few years. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.

From March 31, 2020, to June 30, 2022, the current ratio generally remained below 1, indicating that Entergy may have had difficulty meeting its short-term obligations with its current assets alone during this period.

However, there was a notable improvement in the company's liquidity position from March 31, 2023, to September 30, 2024, as the current ratio increased to levels above 0.80. This suggests that Entergy enhanced its ability to cover its short-term liabilities with its current assets during this later period.

Overall, while Entergy Corporation faced some liquidity challenges in the past, there has been a positive trend towards improved liquidity in more recent periods. However, the company should continue to monitor and manage its liquidity position to ensure it can meet its short-term obligations effectively.