Entergy Corporation (ETR)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2019	Dec 31, 2018
Long-term debt	US$ in thousands	23,008,800	23,623,500	24,841,600	17,078,600	15,518,300
Total assets	US$ in thousands	59,703,400	58,595,200	59,454,200	51,723,900	48,275,100
Debt-to-assets ratio		0.39	0.40	0.42	0.33	0.32

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $23,008,800K ÷ $59,703,400K
= 0.39

The debt-to-assets ratio of Entergy Corp. has fluctuated over the past five years, as indicated in the table. The ratio was 0.39 at the end of 2019, showing a gradual increase to 0.46 by the end of 2021 before declining slightly to 0.44 at the end of 2023.

A higher debt-to-assets ratio suggests that a larger portion of Entergy's assets is financed through debt, indicating higher financial leverage. The company's ratio has generally been above 0.40, signifying a significant reliance on debt to fund its operations and investments.

It is important to note that while a higher debt-to-assets ratio can potentially amplify returns on equity, it also exposes the firm to higher financial risk, especially in periods of economic downturn or rising interest rates. Investors and creditors may closely monitor this ratio to assess Entergy's ability to cover its debt obligations and manage financial risks effectively.