Entergy Corporation (ETR)

Liquidity ratios

	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
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
Quick ratio	0.14	0.47	0.48	0.37	0.02	0.50	0.39	0.67	0.05	0.16	0.20	0.21	0.12	0.15	0.18	0.39	0.48	0.35	0.15	0.24
Cash ratio	0.14	0.47	0.48	0.37	0.02	0.50	0.39	0.67	0.05	0.16	0.20	0.21	0.12	0.15	0.18	0.39	0.48	0.35	0.15	0.24

Entergy Corporation's liquidity ratios have shown fluctuating trends over the years. The current ratio, a measure of short-term liquidity, ranged from 0.57 to 1.06 during the period under review. This ratio indicates the company's ability to cover its short-term obligations with its short-term assets.

Similarly, the quick ratio, which excludes inventory from current assets, fluctuated between 0.02 and 0.67. This ratio provides a more conservative measure of liquidity, as it focuses on assets that can be quickly converted into cash to meet short-term obligations.

The cash ratio, representing the most conservative measure of liquidity by considering only cash and cash equivalents, ranged from 0.02 to 0.67. This ratio reflects the company's ability to cover its short-term liabilities with its readily available cash resources.

Overall, while there have been fluctuations in Entergy Corporation's liquidity ratios, it is important for the company to maintain a healthy balance between current assets and current liabilities to ensure it can meet its short-term financial obligations effectively.

Additional liquidity measure

		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
Cash conversion cycle	days	89.82	86.17	82.74	86.07	86.29	77.46	67.68	59.62	57.23	57.31	62.22	63.83	63.54	64.05	66.47	68.92	73.20	67.51	62.59	56.83

The cash conversion cycle of Entergy Corporation has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Initially, the cash conversion cycle increased from 56.83 days on March 31, 2020, to a peak of 89.82 days on December 31, 2024, reflecting potential issues with managing inventory and collecting receivables efficiently. During this period, there were fluctuations in the cycle, showing periods of improvement followed by setbacks.

It is important for Entergy Corporation to closely monitor and manage its cash conversion cycle to ensure optimal efficiency in its operations. By focusing on reducing the cycle time, the company can enhance its liquidity position, improve working capital management, and potentially increase profitability in the long run.