Ameren Corp (AEE)

Liquidity ratios

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
Current ratio 0.66 0.63 0.67 0.59 0.65 0.52 0.62 0.75 0.79 0.79 0.67 0.65 0.70 0.94 0.97 0.79 0.76 0.76 0.81 0.62
Quick 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
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

Ameren Corp's liquidity ratios show mixed results over the time period analyzed.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been fluctuating between 0.52 to 0.97. The ratio has been below 1 for most of the quarters, indicating that Ameren may have difficulties meeting its short-term obligations with its current assets alone. However, the ratio has shown some improvement towards the end of the period.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Ameren's quick ratio has shown significant variability, ranging from negative values to as high as 1.78. The negative values suggest that the company may not be able to meet its immediate obligations using only its most liquid assets. However, there are quarters where the quick ratio has been well above 1, indicating a stronger ability to cover short-term liabilities without relying on inventory.

The cash ratio, which looks at the company's ability to cover its current liabilities with cash and cash equivalents, has also shown fluctuations from 0.00 to 1.78. The positive cash ratios in certain quarters indicate that Ameren has sufficient cash on hand to meet its short-term obligations in those periods. However, the negative cash ratio in one quarter suggests potential liquidity challenges.

Overall, Ameren Corp's liquidity ratios indicate a mix of strengths and weaknesses in managing its short-term liquidity needs. The company may need to closely monitor its working capital management and cash flow to ensure it can meet its financial obligations effectively.

Additional liquidity measure

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 conversion cycle days 59.09 60.35 57.82 55.79 60.86 61.81 54.39 48.20 52.76 59.97 56.71 51.73 63.50 67.97 62.39 57.63 64.77 68.06 62.25 55.60

The cash conversion cycle of Ameren Corp has shown fluctuations over the past few years based on the provided data. Initially, the cash conversion cycle was around 55-60 days, indicating that it took the company approximately 55-60 days to convert its investments in inventory and other resources back into cash.

Subsequently, there was an upward trend in the cash conversion cycle, with an increase to around 68 days by September 30, 2020, which was the highest point during this period. This increase could suggest potential inefficiencies in managing the company's working capital and cash flow.

However, there was a gradual improvement in the cash conversion cycle after September 2020, with a decreasing trend observed through 2021 and into 2022. By March 31, 2024, the cash conversion cycle had decreased to around 55-60 days, displaying a more efficient conversion of resources into cash compared to the peak in 2020.

Overall, the analysis of Ameren Corp's cash conversion cycle highlights fluctuations over time, emphasizing the importance of effectively managing working capital and cash flow to optimize operational efficiency and financial performance.