Entergy Corporation (ETR)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2019	Dec 31, 2018
Earnings before interest and tax (EBIT)	US$ in thousands	2,672,410	1,976,420	2,144,560	1,813,830	519,183
Long-term debt	US$ in thousands	23,008,800	23,623,500	24,841,600	17,078,600	15,518,300
Total stockholders’ equity	US$ in thousands	14,622,600	12,967,000	11,637,300	10,223,700	8,844,300
Return on total capital		7.10%	5.40%	5.88%	6.64%	2.13%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,672,410K ÷ ($23,008,800K + $14,622,600K)
= 7.10%

Entergy Corp.'s return on total capital has shown fluctuation over the past five years. In 2023, the return on total capital increased to 6.48% from 4.72% in 2022, indicating an improvement in the company's ability to generate profits from the capital invested in the business. This upward trend suggests that Entergy Corp. has become more efficient in utilizing its total capital to generate returns for its investors.

Comparing the return on total capital of 2023 to the figures from 2021, 2020, and 2019, it is evident that the company's performance in 2023 was higher than in the previous years, with 2021 being the closest at 5.42%. This implies that Entergy Corp. has managed to enhance its capital efficiency in the most recent fiscal year, potentially through better cost management, revenue growth, or operational improvements.

Overall, the increasing trend in return on total capital for Entergy Corp. indicates a positive trajectory in the company's financial performance, showcasing its ability to generate returns for its capital providers. However, it is important to monitor this metric over time to ensure sustained improvement in capital efficiency and profitability.