Entergy Corporation (ETR)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	1,055,590	2,362,310	1,097,140	1,118,720	1,406,650
Total assets	US$ in thousands	64,790,000	59,703,400	58,595,200	59,454,200	58,239,200
ROA		1.63%	3.96%	1.87%	1.88%	2.42%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $1,055,590K ÷ $64,790,000K
= 1.63%

Entergy Corporation's return on assets (ROA) has fluctuated over the past five years. In 2020, the ROA stood at 2.42%, indicating that Entergy was generating $0.0242 in profit for every dollar of assets held. However, there was a slight decrease in 2021 to 1.88% and a further decrease in 2022 to 1.87%, suggesting a possible decline in the company's asset utilization efficiency.

The trend changed in 2023 when Entergy's ROA significantly improved to 3.96%, indicating a higher profitability relative to its assets. This could be attributed to improved operational efficiency, strategic investments, or a shift in business focus resulting in improved returns.

However, in 2024, the ROA dropped to 1.63%, indicating a decrease in profitability relative to assets compared to the previous year. This decrease may raise concerns about the company's ability to effectively generate earnings from its asset base during that period.

Overall, analyzing Entergy Corporation's ROA over the five-year period provides insights into the company's ability to generate profits from its assets. It is essential for investors and stakeholders to monitor this ratio to assess the company's operational efficiency and profitability in utilizing its asset base effectively.