The business behind the dividend
| Measure | ETR | Median | Formula |
|---|---|---|---|
| Return on equity | 10.5% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 6.8% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $-3.61bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $-2.53bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 24.7% | 15.0% | Operating income ÷ revenue |
| Net margin | 13.7% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.79x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.27x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.74x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 2.90x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 10.5% | 7.0% | 16.1% | 8.5% | 9.6% | 12.7% | 12.1% | 9.6% | 5.1% | -7.2% | 9.6% |
| Return on capital employed | 6.8% | 6.2% | 6.6% | 5.3% | 4.9% | 5.3% | 4.9% | 1.9% | 5.9% | -3.6% | 5.3% |
| Operating margin | 24.7% | 22.3% | 21.6% | 14.9% | 15.7% | 17.5% | 12.8% | 4.3% | 12.3% | -7.5% | 14.9% |
| Net margin | 13.7% | 8.9% | 19.4% | 8.0% | 9.5% | 13.7% | 11.4% | 7.7% | 3.7% | -5.4% | 8.9% |
| Debt to equity | 1.79x | 1.86x | 1.72x | 2.00x | 2.22x | 2.05x | 1.75x | 1.83x | 1.89x | 1.84x | 1.84x |
| Current ratio | 0.74x | 0.72x | 0.57x | 0.64x | 0.59x | 0.65x | 0.54x | 0.54x | 0.65x | 1.15x | 0.64x |
| Cash conversion | 2.90x | 4.23x | 1.82x | 2.34x | 2.06x | 1.94x | 2.27x | 2.81x | 6.37x | — | 2.34x |
How it compares in utilities
Among the 57 utilities companies here measured on GAAP earnings, Entergy pays out less than 27 of them. The median for that group is 61.5%, against this company’s 62.4%.
Closest on GAAP earnings
- Essential Utilities (WTRG) 60.7%
- CMS Energy (CMS) 61.5%
- DTE Energy (DTE) 63.2%
- Alliant Energy (LNT) 64.6%
Same sector and same denominator, so the figures are comparable. All 58 in utilities →