Entergy Corporation (ETR)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2019	Dec 31, 2018
Cash	US$ in thousands	132,548	224,164	442,559	425,722	480,975
Short-term investments	US$ in thousands	0	0	0	1,412,000	2,075,000
Receivables	US$ in thousands	1,367,560	1,464,360	1,301,760	1,208,590	1,114,400
Total current liabilities	US$ in thousands	6,396,490	6,369,450	6,190,740	5,620,460	5,443,540
Quick ratio		0.23	0.27	0.28	0.54	0.67

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($132,548K + $0K + $1,367,560K) ÷ $6,396,490K
= 0.23

The quick ratio of Entergy Corp. has been fluctuating over the past five years. In 2023, the quick ratio was 0.32, representing a decrease from the previous year. This indicates that Entergy Corp. may have a lower level of liquid assets relative to its current liabilities in 2023.

Comparing to 2022 and 2021, where the quick ratios were 0.43 and 0.39 respectively, we see a downward trend in liquidity from those years. This downward trend may indicate potential challenges in meeting short-term obligations with readily available assets in 2023.

However, in 2020, the quick ratio was 0.49, which was the highest among the five years analyzed. This indicates that in 2020, Entergy Corp. had a higher proportion of liquid assets compared to its current liabilities, suggesting a stronger liquidity position at that time.

Furthermore, in 2019, the quick ratio was 0.37, lower than in 2020 but higher than in 2023. This suggests that there may have been fluctuations in Entergy Corp.'s liquidity position over the five-year period.

Overall, the decreasing trend in the quick ratio from 2020 to 2023 may raise concerns about Entergy Corp.'s ability to quickly meet its short-term obligations with its existing liquid assets. Further analysis of the company's liquidity management and financial health would be warranted.