Entergy Corporation (ETR)

Debt-to-capital 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 stockholders’ equity US$ in thousands 14,622,600 12,967,000 11,637,300 10,223,700 8,844,300
Debt-to-capital ratio 0.61 0.65 0.68 0.63 0.64

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $23,008,800K ÷ ($23,008,800K + $14,622,600K)
= 0.61

Entergy Corp.'s debt-to-capital ratio has shown a fluctuating trend over the past five years. The ratio decreased from 0.66 in 2019 to 0.64 in 2023, indicating a slight improvement in the company's capital structure. However, it is worth noting that the ratio increased in 2020 to 0.69 before declining in 2021 and 2022.

The decreasing trend in the debt-to-capital ratio from 2020 to 2023 suggests that Entergy Corp. may be managing its debt levels more effectively relative to its capital base. A lower ratio implies a lower dependence on debt financing and a stronger equity position.

Overall, the trends in Entergy Corp.'s debt-to-capital ratio indicate a mixed performance in managing its debt and capital structure over the years, with recent improvements suggesting a potentially healthier financial position.