Entergy Corporation (ETR)

Return on total capital

		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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,635,917	2,780,187	2,603,119	1,928,324	2,032,275	1,960,913	1,816,611	1,903,687	1,845,624	2,282,091	1,893,532	2,125,080	1,865,622	1,607,535	1,506,999	1,390,497	913,027	664,133	467,829	530,657
Long-term debt	US$ in thousands	23,008,800	24,659,300	24,321,700	24,464,300	23,623,500	24,635,900	24,543,900	26,176,400	24,841,600	23,846,700	24,212,000	24,075,500	19,612,700	18,278,400	18,228,500	17,078,600	16,938,000	17,204,300	17,167,900	15,518,300
Total stockholders’ equity	US$ in thousands	14,622,600	13,691,500	13,237,100	13,058,200	12,967,000	12,096,400	11,711,100	11,710,100	11,637,300	11,252,500	10,887,900	11,017,200	10,771,800	10,426,000	10,224,000	10,223,700	10,035,100	9,797,500	8,970,370	8,844,300
Return on total capital		7.00%	7.25%	6.93%	5.14%	5.55%	5.34%	5.01%	5.02%	5.06%	6.50%	5.39%	6.06%	6.14%	5.60%	5.30%	5.09%	3.38%	2.46%	1.79%	2.18%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,635,917K ÷ ($23,008,800K + $14,622,600K)
= 7.00%

Entergy Corp.'s return on total capital has displayed fluctuating trends over the past eight quarters. In Q3 2023, it stood at 6.87%, showing a slight improvement from the previous quarter's 6.48%. However, the return dipped in Q1 2023 to 4.36% before recovering in Q2 2023 to 6.44%. The company's performance in Q4 2022 and Q1 2022 was relatively stable, with returns around the 4.7% mark. Notably, there was a noticeable increase in Q2 2022 when the return rose to 5.35%.

Overall, the variations in Entergy Corp.'s return on total capital indicate fluctuations in its profitability and efficiency in utilizing its total capital resources. It is important for stakeholders to closely monitor these changes to assess the company's financial health and management effectiveness.