Entergy Corporation (ETR)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,061,184 | 1,762,306 | 1,786,266 | 2,126,548 | 2,362,311 | 1,471,679 | 1,362,554 | 1,130,243 | 1,094,344 | 1,255,590 | 1,226,004 | 1,064,907 | 1,123,072 | 1,252,142 | 1,242,258 | 1,604,185 | 1,388,334 | 1,385,391 | 1,229,512 | 1,105,403 |
| Total stockholders’ equity | US$ in thousands | 15,083,900 | 15,032,800 | 14,567,700 | 14,458,300 | 14,657,600 | 13,691,500 | 13,237,100 | 13,058,200 | 13,002,000 | 12,096,400 | 11,711,100 | 11,710,100 | 11,637,300 | 11,252,500 | 10,887,900 | 11,017,200 | 10,926,100 | 10,771,800 | 10,426,000 | 10,224,000 |
| ROE | 7.04% | 11.72% | 12.26% | 14.71% | 16.12% | 10.75% | 10.29% | 8.66% | 8.42% | 10.38% | 10.47% | 9.09% | 9.65% | 11.13% | 11.41% | 14.56% | 12.71% | 12.86% | 11.79% | 10.81% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,061,184K ÷ $15,083,900K
= 7.04%
Entergy Corporation's return on equity (ROE) has displayed fluctuations over the periods under review. The ROE increased from 10.81% as of March 31, 2020, to a peak of 16.12% by December 31, 2023. This upward trend indicates an improvement in the company's ability to generate profit from shareholders' equity.
However, the ROE declined to 7.04% by December 31, 2024, marking a significant decrease from the previous periods. This reduction could suggest challenges in maintaining profitability relative to the shareholders' equity during that quarter.
Overall, while Entergy Corporation experienced periods of increasing ROE, the notable decline by the end of 2024 highlights the importance of sustained profitability and the efficient utilization of equity for generating returns for shareholders. It would be beneficial for the company to investigate the reasons behind the decline and take appropriate measures to address any underlying issues to ensure continued financial success.
Peer comparison
Dec 31, 2024