Ameren Corp (AEE)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 7,000 | 17,000 | 37,000 | 85,000 | 38,000 | 8,000 | 7,000 | 10,000 | 10,000 | 7,000 | 7,000 | 7,000 | 8,000 | 7,000 | 99,000 | 6,000 | 139,000 | 6,000 | 8,000 | 42,000 |
| Short-term investments | US$ in thousands | 4,688,000 | — | — | — | 0 | 1,321,000 | 3,502,000 | 1,180,000 | 240,000 | — | -648,000 | — | 3,347,000 | 3,902,000 | 3,780,000 | 3,659,000 | 3,570 | 3,386 | — | — |
| Total current liabilities | US$ in thousands | 3,413,000 | 3,567,000 | 3,293,000 | 3,505,000 | 3,345,000 | 4,017,000 | 3,243,000 | 2,757,000 | 3,366,000 | 3,175,000 | 3,588,000 | 3,145,000 | 2,826,000 | 2,357,000 | 2,177,000 | 2,307,000 | 2,180,000 | 2,105,000 | 2,000,000 | 2,367,000 |
| Cash ratio | 1.38 | 0.00 | 0.01 | 0.02 | 0.01 | 0.33 | 1.08 | 0.43 | 0.07 | 0.00 | -0.18 | 0.00 | 1.19 | 1.66 | 1.78 | 1.59 | 0.07 | 0.00 | 0.00 | 0.02 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($7,000K
+ $4,688,000K)
÷ $3,413,000K
= 1.38
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to pay off current obligations.
Analyzing the cash ratio of Ameren Corp from March 2020 to December 2024, we observe fluctuations in the ratio over time. The ratio was very low in March 2020 at 0.02, indicating limited cash to cover short-term liabilities. Subsequently, in June and September 2020, the ratio dropped to 0.00, suggesting a potential liquidity concern.
However, there was a notable improvement in the cash ratio by December 2020, reaching 0.07, which continued to increase significantly to 1.59 by March 2021. This significant rise indicates a substantial increase in cash reserves relative to short-term liabilities, reflecting improved liquidity.
The trend continued to remain positive throughout 2021 and the first half of 2022, with the cash ratio consistently above 1.00, indicating a comfortable liquidity position. There was a slight decline in the cash ratio by September 2022, dropping to -0.18, which may raise concerns about the company's ability to cover short-term obligations with its available cash.
However, the cash ratio improved again in subsequent quarters, albeit with some fluctuations. By December 2024, the ratio had increased to 1.38, indicating a favorable liquidity position.
Overall, the analysis of Ameren Corp's cash ratio highlights fluctuations in liquidity levels over the period, with periods of improvement and some variability. Investors and analysts may want to further investigate the reasons behind these fluctuations to assess the company's overall financial health and liquidity management.
Peer comparison
Dec 31, 2024