Ameren Corp (AEE)

Short-term

Turnover ratios

Based on the provided data, we can analyze the activity ratios of Ameren Corp. as follows:

1. Inventory Turnover:
- The inventory turnover ratio indicates the efficiency with which Ameren manages its inventory. A higher ratio signifies that the company is selling its inventory more quickly.
- Ameren's inventory turnover has varied over the past five years, ranging from 1.93 to 4.01. This indicates some fluctuation in how efficiently the company is managing its inventory.

2. Receivables Turnover:
- The receivables turnover ratio shows how effectively Ameren collects on its credit sales. A higher ratio suggests better efficiency in collecting outstanding receivables.
- Ameren's receivables turnover has been relatively consistent over the years, ranging from 7.23 to 8.16. This indicates that the company has been successful in collecting its accounts receivable in a timely manner.

3. Payables Turnover:
- The payables turnover ratio, though not provided in the data, would have shown how quickly Ameren pays off its suppliers. A higher ratio would indicate that the company is paying its bills promptly.
- Since the payables turnover data is not available, it is not possible to evaluate how efficiently Ameren is managing its payables.

4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively Ameren is utilizing its working capital to generate sales. A higher ratio would indicate that the company is efficiently using its resources to drive revenue.
- The data for working capital turnover is not provided, which limits our ability to evaluate how well Ameren is utilizing its working capital to generate sales.

In conclusion, based on the available activity ratios data, Ameren has shown varying levels of efficiency in managing its inventory and collecting its receivables over the past five years. However, without data on payables turnover and working capital turnover, a comprehensive analysis of the company's overall operational efficiency is not possible.

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Average number of days

Ameren Corp.'s activity ratios provide insight into the efficiency of its operations over the past five years.

1. Days of Inventory on Hand (DOH): This ratio indicates the number of days it takes for Ameren to sell its inventory. A downward trend in this ratio is generally favorable as it suggests the company is managing its inventory more efficiently. Ameren's DOH has fluctuated over the years, with a significant decrease in 2022 followed by an increase in 2023. The sharp decrease in 2022 may signify improved inventory management, while the increase in 2023 may indicate a buildup of inventory relative to sales.

2. Days of Sales Outstanding (DSO): DSO reflects the average number of days it takes for Ameren to collect payment from its customers. A lower DSO is preferable as it signifies quicker collection of receivables. Ameren's DSO has shown some variability but generally remained stable over the years, hovering around the 45-50 day range. This indicates that Ameren has been consistent in managing its accounts receivable and ensuring timely collection from customers.

3. Number of Days of Payables: The data provided does not include information on the number of days of payables, which is essential for calculating the cash conversion cycle. This ratio, when combined with DOH and DSO, gives a comprehensive view of Ameren's operating cycle efficiency.

Overall, while Ameren's activity ratios have shown some variation, further analysis incorporating the missing payables data would offer a more comprehensive understanding of the company's working capital management and operational efficiency.

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Long-term

Ameren Corp.'s long-term activity ratios indicate the efficiency with which the company utilizes its assets to generate revenue over the years. The fixed asset turnover ratio has shown a slight decline from 0.25 in 2022 to 0.22 in 2023, reflecting a decrease in the company's ability to generate sales from its fixed assets. This may suggest that Ameren is not effectively utilizing its long-term assets to drive revenue growth.

Similarly, the total asset turnover ratio has decreased from 0.21 in 2022 to 0.18 in 2023, indicating a reduction in the company's overall efficiency in generating sales from its total assets. This trend over the years may point to potential inefficiencies in Ameren's asset utilization or a decrease in sales relative to its asset base.

Overall, Ameren Corp.'s long-term activity ratios suggest a downward trend in asset turnover efficiency, highlighting the need for the company to improve its utilization of both fixed and total assets to enhance revenue generation and overall performance.