Ameren Corp (AEE)

Short-term

Turnover ratios

Based on the provided data for Ameren Corp's activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory.
- Ameren Corp's inventory turnover has been generally increasing over the years, from 5.64 in 2020 to 16.27 in 2024.
- A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which could signify efficient inventory management and potentially lower holding costs.

2. Receivables Turnover:
- The receivables turnover ratio assesses how efficiently a company collects payments from its customers.
- The data provided does not show any values for Ameren Corp's receivables turnover, which might indicate that the company does not rely heavily on credit sales or the data might be missing.

3. Payables Turnover:
- The payables turnover ratio evaluates how efficiently a company pays its suppliers.
- Similar to receivables turnover, the data for payables turnover is missing, which makes it difficult to assess how effectively the company manages its payments to suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how effectively a company is utilizing its working capital to generate sales.
- The data provided does not contain values for Ameren Corp's working capital turnover, potentially suggesting a lack of information on how efficiently the company is leveraging its working capital.

In conclusion, while Ameren Corp's inventory turnover shows an improving trend, the absence of data for receivables turnover, payables turnover, and working capital turnover limits a comprehensive analysis of the company's overall activity and efficiency in managing its resources and operations.

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Average number of days

Ameren Corp's Days of Inventory on Hand (DOH) decreased from 64.77 days in 2020 to 22.43 days in 2024, indicating a significant improvement in managing inventory levels efficiently. This suggests that Ameren has been able to reduce the number of days it takes to sell its inventory.

The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not provided for any year, which indicates that these specific activity ratios are not available for analysis. Without knowing the DSO and Number of Days of Payables, it is challenging to assess Ameren's efficiency in collecting receivables and paying its suppliers.

Overall, based on the trend observed in the Days of Inventory on Hand, Ameren Corp appears to be effectively managing its inventory levels, potentially leading to improved cash flow and operational efficiency.

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Long-term

To analyze Ameren Corp's long-term activity ratios, we will focus on the fixed asset turnover and total asset turnover ratios from 2020 to 2024.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher ratio indicates more efficient use of fixed assets.
- Ameren Corp's fixed asset turnover ratio remained relatively stable at 0.22 in 2020 and 2021 before increasing to 0.25 in 2022.
- However, the data for 2023 and 2024 is not available (denoted by "—"), making it challenging to assess the trend accurately.

2. Total Asset Turnover:
- The total asset turnover ratio indicates how effectively a company is using its total assets to generate revenue. A higher ratio suggests better asset utilization.
- Ameren Corp's total asset turnover ratio was 0.18 in 2020 and 2021, indicating moderate asset turnover.
- The ratio increased to 0.21 in 2022, suggesting improved efficiency in utilizing total assets to generate sales.
- However, the ratio dropped to 0.18 in 2023 before significantly increasing to 0.40 in 2024, indicating a substantial improvement in asset utilization efficiency.

In conclusion, Ameren Corp's fixed asset turnover remained stable with a slight improvement in 2022, while the total asset turnover showed fluctuations over the years, ultimately experiencing a significant increase in 2024. This indicates varying levels of efficiency in utilizing fixed and total assets to generate revenue, highlighting the importance of closely monitoring these ratios for long-term performance evaluation.