Entergy Corporation (ETR)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2019	Dec 31, 2018
Total assets	US$ in thousands	59,703,400	58,595,200	59,454,200	51,723,900	48,275,100
Total stockholders’ equity	US$ in thousands	14,622,600	12,967,000	11,637,300	10,223,700	8,844,300
Financial leverage ratio		4.08	4.52	5.11	5.06	5.46

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $59,703,400K ÷ $14,622,600K
= 4.08

The financial leverage ratio of Entergy Corp. has been gradually decreasing over the past five years. The ratio was 5.04 in 2019, peaked at 5.31 in 2020, and then decreased to 5.11 in 2021, 4.52 in 2022, and finally to 4.08 in 2023. This trend indicates that the company has been reducing its reliance on debt financing in relation to its equity over time. A lower financial leverage ratio suggests a lower level of financial risk for the company, as it indicates a smaller proportion of debt in its capital structure compared to equity. This improvement in financial leverage ratio may increase the company's financial stability and flexibility, making it less vulnerable to economic downturns and potential financial distress.