Entergy Corporation (ETR)
Interest coverage
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
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Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,593,029 | 2,165,332 | 2,161,112 | 2,563,847 | 2,678,179 | 2,812,987 | 2,628,291 | 1,881,842 | 1,970,396 | 2,009,194 | 1,945,105 | 2,107,442 | 2,144,786 | 1,999,697 | 1,968,206 | 2,433,524 | 2,070,809 | 2,107,295 | 1,820,720 | 1,588,128 |
Interest expense (ttm) | US$ in thousands | 1,150,820 | 1,106,278 | 1,066,576 | 1,038,348 | 1,016,886 | 998,917 | 970,936 | 1,035,497 | 1,033,203 | 1,008,757 | 990,797 | 878,263 | 834,692 | 816,879 | 804,110 | 795,390 | 1,002,515 | 996,327 | 986,235 | 965,880 |
Interest coverage | 2.25 | 1.96 | 2.03 | 2.47 | 2.63 | 2.82 | 2.71 | 1.82 | 1.91 | 1.99 | 1.96 | 2.40 | 2.57 | 2.45 | 2.45 | 3.06 | 2.07 | 2.12 | 1.85 | 1.64 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,593,029K ÷ $1,150,820K
= 2.25
Entergy Corporation's interest coverage ratio has exhibited fluctuations over the reported periods. The interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses.
Looking at the data provided, we can see that Entergy Corporation's interest coverage ratio ranged from as low as 1.64 in March 2020 to as high as 3.06 in March 2021. The ratio then experienced some variability but generally stayed within the range of 1.91 to 2.82 for the subsequent periods.
Overall, the trend suggests that Entergy Corporation has managed to maintain a relatively stable interest coverage ratio, demonstrating a reasonable ability to meet its interest obligations from operating income. However, it's worth noting some fluctuations in the ratio, which may indicate changes in the company's financial performance or capital structure. Further analysis and comparison with industry benchmarks could provide additional insights into Entergy Corporation's financial health and solvency.
Peer comparison
Dec 31, 2024