Entergy Corporation (ETR)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,356,540 | 1,103,170 | 1,118,490 | 1,241,230 | 848,661 |
| Total assets | US$ in thousands | 59,703,400 | 58,595,200 | 59,454,200 | 51,723,900 | 48,275,100 |
| ROA | 3.95% | 1.88% | 1.88% | 2.40% | 1.76% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $2,356,540K ÷ $59,703,400K
= 3.95%
Entergy Corp.'s Return on Assets (ROA) has shown fluctuations over the past five years. In 2023, the company achieved an ROA of 3.95%, a significant increase from the previous year's 1.88%. This improvement indicates that Entergy Corp. generated $0.0395 in net income for every dollar of assets in 2023, reflecting increased efficiency in asset utilization.
In contrast, the company's ROA was also 1.88% in 2022, indicating that it achieved similar profitability levels on its assets as in 2021. However, the ROA was higher in 2020 at 2.38% and also in 2019 at 2.40%. This suggests that in those years, Entergy Corp. was more effective in generating returns from its assets compared to the two subsequent years.
Overall, while there have been fluctuations in Entergy Corp.'s ROA over the past five years, the most recent data point of 3.95% indicates a notable improvement in asset efficiency and profitability for the company. Tracking ROA trends can provide insights into the company's operational efficiency and its ability to generate profits from its assets.
Peer comparison
Dec 31, 2023