Entergy Corporation (ETR)

Financial leverage 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
Total assets	US$ in thousands	59,703,400	60,552,100	59,717,200	59,203,300	58,595,200	58,975,300	57,827,600	59,833,500	59,454,200	58,843,500	55,949,300	58,667,600	56,070,300	53,365,300	52,555,000	51,723,900	50,506,300	50,565,700	49,605,400	48,275,100
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
Financial leverage ratio		4.08	4.42	4.51	4.53	4.52	4.88	4.94	5.11	5.11	5.23	5.14	5.33	5.21	5.12	5.14	5.06	5.03	5.16	5.53	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 exhibited a decreasing trend over the past few quarters. The ratio started at 5.11 in Q1 2022 and has gradually decreased to 4.08 in Q4 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments.

While the trend suggests a move towards a healthier financial structure with lower leverage, the ratio still remains above 1, indicating that the company has more debt than equity in its capital structure. Entergy Corp. should continue to monitor and manage its leverage ratio to ensure sustainable growth and financial stability.