Entergy Corporation (ETR)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2019	Dec 31, 2018
Earnings before interest and tax (EBIT)	US$ in thousands	2,672,410	1,976,420	2,144,560	1,813,830	519,183
Interest expense	US$ in thousands	1,006,410	912,237	834,694	742,425	707,348
Interest coverage		2.66	2.17	2.57	2.44	0.73

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $2,672,410K ÷ $1,006,410K
= 2.66

Entergy Corp.'s interest coverage ratio has shown some fluctuations over the past five years. The ratio stood at 2.64 in 2023, reflecting the company's ability to cover its interest expenses 2.64 times with its operating income. This indicates a slight improvement from the previous year when the ratio was 2.07. In 2021, the interest coverage ratio was 2.53, showing a slight decrease from the previous year's 2.29. The trend indicates relative stability in Entergy Corp.'s ability to meet its interest obligations, with the ratio hovering around the 2.5 to 2.6 range in the last three years, which is generally considered healthy. Overall, the company's interest coverage appears adequate, suggesting that it has sufficient earnings to comfortably cover its interest expenses.