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
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.