Entergy Corporation (ETR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.30 | 4.29 | 4.31 | 4.26 | 4.07 | 4.42 | 4.51 | 4.53 | 4.51 | 4.88 | 4.94 | 5.11 | 5.11 | 5.23 | 5.14 | 5.33 | 5.33 | 5.21 | 5.12 | 5.14 |
Entergy Corporation's solvency ratios indicate a strong financial position with consistently low levels of debt relative to assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have remained at 0.00 throughout the reporting periods, indicating that the company has not relied heavily on debt to finance its operations.
The Financial leverage ratio, which measures the company's ability to meet its financial obligations with respect to its equity, has shown a declining trend over the years. Starting at 5.14 in March 2020, the ratio decreased to 4.30 by December 2024, reflecting a decreasing reliance on debt in the company's capital structure.
Overall, Entergy Corporation's solvency ratios demonstrate a solid financial foundation and prudent management of debt, suggesting a low risk of financial distress and strong ability to weather economic uncertainties.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Based on the provided data, the interest coverage ratio of Entergy Corporation has shown some fluctuations over the given periods, ranging from a low of 1.64 in March 31, 2020, to a high of 3.06 in March 31, 2021. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt, with a higher ratio indicating a greater ability to cover interest expenses.
The trend in the interest coverage ratio for Entergy Corporation shows some variability but generally remains within a moderate range. While there are some fluctuations, the company's interest coverage ratio has mostly stayed above 1, indicating that it has been able to cover its interest obligations with its operating income.
It is worth noting that a consistent and increasing trend in the interest coverage ratio is typically viewed positively by investors and creditors as it signifies a stronger financial position and lower risk of default. However, a declining trend in this ratio could raise concerns about the company's ability to meet its debt obligations from its operating earnings.
Overall, a more thorough analysis, considering additional financial metrics and external factors, would provide a more comprehensive evaluation of Entergy Corporation's financial health and debt servicing capacity.