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.
Peer comparison
Dec 31, 2023