Entergy Corporation (ETR)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,635,917	2,780,187	2,603,119	1,928,324	2,032,275	1,960,913	1,816,611	1,903,687	1,845,624	2,282,091	1,893,532	2,125,080	1,865,622	1,607,535	1,506,999	1,390,497	913,027	664,133	467,829	530,657
Interest expense (ttm)	US$ in thousands	1,006,405	988,436	960,455	936,448	912,236	887,790	869,830	856,345	834,692	819,480	814,636	791,405	779,474	769,382	749,027	742,426	734,461	727,889	721,234	707,348
Interest coverage		2.62	2.81	2.71	2.06	2.23	2.21	2.09	2.22	2.21	2.78	2.32	2.69	2.39	2.09	2.01	1.87	1.24	0.91	0.65	0.75

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,635,917K ÷ $1,006,405K
= 2.62

To analyze Entergy Corp.'s interest coverage ratio based on the provided data, we calculate this ratio by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

Looking at the data provided, we observe fluctuations in Entergy Corp.'s interest coverage ratio over the past eight quarters. In Q1 2023, the interest coverage ratio was 1.90, indicating that the company earned 1.90 times the amount needed to cover its interest expenses for that quarter. This ratio improved in Q2 and Q3 2023 to 2.73 and 2.88, respectively, signaling a stronger ability to meet interest payments.

Comparing the latest quarter, Q4 2023, with the previous quarters, we see an interest coverage ratio of 2.64, which is slightly lower than Q3 2023 but still above the threshold of 2.00, demonstrating a relatively healthy level of interest coverage.

Over the past two years, Entergy Corp.'s interest coverage ratio has shown some variability, with fluctuations between 1.81 and 2.88. Despite this variability, the company has generally maintained an interest coverage ratio above 2.00, indicating a consistent ability to cover its interest obligations.

In conclusion, based on the data provided, Entergy Corp. has shown a relatively stable interest coverage ratio, suggesting that the company is managing its interest expenses effectively and is in a position to meet its interest payments with its earnings before interest and taxes.