Entergy Corporation (ETR)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.61	0.64	0.65	0.65	0.65	0.67	0.68	0.69	0.68	0.68	0.69	0.69	0.65	0.64	0.64	0.63	0.63	0.64	0.66	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

The debt-to-capital ratio of Entergy Corp. has been relatively stable over the past eight quarters, ranging from 0.64 to 0.71. This ratio indicates the proportion of the company's capital structure that is financed through debt.

A higher debt-to-capital ratio suggests that a larger portion of the company's capital structure is funded by debt, which can indicate higher financial risk. Conversely, a lower ratio indicates a lower reliance on debt for financing.

The trend in Entergy Corp.'s debt-to-capital ratio shows some fluctuation but remains within a narrow range. While the ratio has slightly decreased from 0.71 in Q1 2022 to 0.64 in Q4 2023, it has also shown some stability around the 0.68 to 0.70 range in recent quarters.

Overall, the debt-to-capital ratio of Entergy Corp. suggests a moderate level of leverage in its capital structure, which may be considered manageable depending on the company's overall financial health and industry norms. It would be beneficial to further analyze the company's specific debt levels and explore how this ratio compares to its industry peers for a more comprehensive assessment.