Ameren Corp (AEE)

Short-term

Turnover ratios

Ameren Corp's Inventory turnover ratio has shown fluctuations over the past few years, ranging from 5.36 to 7.57. It indicates the number of times inventory is sold and replaced over a period, with a higher ratio typically indicating efficient inventory management.

The Receivables turnover, Payables turnover, and Working Capital turnover ratios are not available in the provided data, making it challenging to assess Ameren's efficiency in collecting receivables, paying suppliers, and managing working capital.

Overall, based on the Inventory turnover ratio, Ameren Corp appears to have effectively managed its inventory levels, ensuring a healthy balance between holding too much inventory and stockouts. However, a more comprehensive analysis incorporating additional activity ratios would provide a more complete picture of the company's operational efficiency.

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Average number of days

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

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand measure how long, on average, it takes for a company to sell its inventory. It indicates the efficiency of inventory management.
- Ameren Corp's DOH ranged from 48.20 days to 68.06 days over the latest reporting periods.
- A decreasing trend in DOH from 68.06 days to 48.20 days indicates improved inventory turnover and efficient inventory management over the quarters.

2. Days of Sales Outstanding (DSO):
- DSO reflects the average number of days it takes for a company to collect revenue after a sale is made. It shows the effectiveness of the company in collecting accounts receivable.
- The data provided does not include DSO information, so we cannot assess Ameren Corp's efficiency in collecting receivables.

3. Number of Days of Payables:
- This ratio represents the average number of days a company takes to pay its suppliers. It reflects the creditor policy in place and the company's ability to manage its working capital effectively.
- Unfortunately, the data does not include information on the number of days of payables, limiting our ability to analyze Ameren Corp's relationship with its suppliers.

Overall, based on the available data, Ameren Corp seems to have shown improvement in its inventory management efficiency as reflected in the decreasing trend of Days of Inventory on Hand over the latest reporting periods. However, without data on Days of Sales Outstanding and Number of Days of Payables, a comprehensive analysis of the company's overall activity ratios and working capital management is challenging.

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Long-term

The fixed asset turnover ratio for Ameren Corp has been relatively stable around 0.22 to 0.25 over the past few years, indicating that the company generates approximately $0.22 to $0.25 in revenue for every dollar invested in fixed assets. This suggests that Ameren is efficiently utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio for Ameren has shown a slight fluctuation, ranging from 0.17 to 0.21. This ratio indicates how effectively the company is using all its assets to generate revenue, with the latest value standing at 0.17 as of December 31, 2024.

Overall, these ratios suggest that Ameren Corp's efficiency in utilizing both fixed and total assets to generate revenue has been relatively stable and satisfactory, although a slight decline in total asset turnover in recent periods may warrant further investigation to ensure continued operational efficiency in the future.