Entergy Corporation (ETR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 64,790,000 | 59,703,400 | 58,595,200 | 59,454,200 | 58,239,200 |
| Total stockholders’ equity | US$ in thousands | 15,083,900 | 14,657,600 | 13,002,000 | 11,637,300 | 10,926,100 |
| Financial leverage ratio | 4.30 | 4.07 | 4.51 | 5.11 | 5.33 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $64,790,000K ÷ $15,083,900K
= 4.30
The financial leverage ratio of Entergy Corporation has been trending downwards over the years, indicating a reduction in the company's reliance on debt to finance its operations. As of December 31, 2020, the ratio stood at 5.33, decreasing to 5.11 by December 31, 2021, and further dropping to 4.51 by December 31, 2022. This declining trend continued with the ratio reaching 4.07 as of December 31, 2023, before slightly increasing to 4.30 by December 31, 2024. Overall, the decreasing trend in the financial leverage ratio suggests that the company is gradually improving its financial position by reducing its debt levels in relation to its equity.
Peer comparison
Dec 31, 2024