Ameren Corp (AEE)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,181,000 | 2,668,000 | 1,968,000 | 1,653,000 | 1,431,000 |
| Total current liabilities | US$ in thousands | 3,345,000 | 3,366,000 | 2,826,000 | 2,180,000 | 2,505,000 |
| Current ratio | 0.65 | 0.79 | 0.70 | 0.76 | 0.57 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,181,000K ÷ $3,345,000K
= 0.65
The current ratio of Ameren Corp. has shown fluctuations over the past five years, ranging from a low of 0.57 in 2019 to a high of 0.79 in 2022. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A ratio below 1 indicates that the company may have difficulties meeting its short-term obligations.
The decreasing trend in the current ratio from 2022 to 2023 (0.79 to 0.65) is a cause for concern, as it suggests a potential deterioration in Ameren Corp.'s short-term liquidity position. This decline could be attributed to a decrease in current assets relative to current liabilities or an increase in short-term liabilities.
It is essential for Ameren Corp. to closely monitor its current ratio and take steps to improve it in order to maintain financial stability and ensure the company can meet its upcoming financial obligations. Actions that could be considered include increasing current assets, managing current liabilities effectively, or implementing strategies to improve cash flow and liquidity.
Peer comparison
Dec 31, 2023