Entergy Corporation (ETR)

Solvency ratios

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
Debt-to-assets ratio 0.39 0.41 0.41 0.41 0.40 0.42 0.42 0.44 0.42 0.41 0.43 0.41 0.35 0.34 0.35 0.33 0.34 0.34 0.35 0.32
Debt-to-capital ratio 0.61 0.64 0.65 0.65 0.65 0.67 0.68 0.69 0.68 0.68 0.69 0.69 0.65 0.64 0.64 0.63 0.63 0.64 0.66 0.64
Debt-to-equity ratio 1.57 1.80 1.84 1.87 1.82 2.04 2.10 2.24 2.13 2.12 2.22 2.19 1.82 1.75 1.78 1.67 1.69 1.76 1.91 1.75
Financial leverage ratio 4.08 4.42 4.51 4.53 4.52 4.88 4.94 5.11 5.11 5.23 5.14 5.33 5.21 5.12 5.14 5.06 5.03 5.16 5.53 5.46

Entergy Corp.'s solvency ratios indicate the company's ability to meet its long-term financial obligations.

The debt-to-assets ratio has been relatively stable over the past few quarters, ranging from 0.44 to 0.47. This ratio signifies that approximately 44% to 47% of Entergy's total assets are funded by debt, which suggests a moderate level of leverage.

The debt-to-capital ratio has also shown consistency, with values between 0.64 and 0.68. This ratio indicates that around 64% to 68% of the company's capital structure is debt-financed, highlighting a moderate reliance on debt to fund operations and investments.

The debt-to-equity ratio has exhibited an increasing trend, rising from 1.81 to 2.13 over the quarters. This upward trajectory suggests a growing proportion of debt relative to equity in Entergy's capital structure, which can imply higher financial risk and potential challenges in meeting debt obligations.

The financial leverage ratio has shown fluctuation but generally increasing from 4.08 to 4.53. This ratio indicates that Entergy's financial leverage has been rising, reflecting a higher level of debt compared to equity and potentially signaling greater financial risk and volatility.

Overall, Entergy Corp.'s solvency ratios demonstrate a moderate level of leverage, with a stable debt-to-assets and debt-to-capital ratio, but a concerning increase in the debt-to-equity ratio and financial leverage ratio. This may indicate a need for closer monitoring of the company's debt management and financial risk exposure.

Coverage ratios

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
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

Based on the data provided for Entergy Corp.'s interest coverage ratio over the past eight quarters, there appears to be some fluctuations in the company's ability to cover its interest expenses. The interest coverage ratios range from a low of 1.81 in Q2 2022 to a high of 2.88 in Q3 2023.

The trend shows that the interest coverage ratio improved gradually from Q2 2022 to Q3 2023, indicating that the company's earnings were more than sufficient to cover its interest expenses during this period. However, there was a slight dip in Q4 2023 compared to the previous quarter.

Overall, the interest coverage ratios for Entergy Corp. over the past eight quarters suggest that the company has been able to comfortably cover its interest expenses, although there have been some fluctuations. It is advisable to continue monitoring this ratio to ensure that the company maintains a healthy financial position in the future.