Ameren Corp (AEE)
Quick ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 25,000 | 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 | 16,000 | 20,000 | 6,000 | 8,000 |
| Short-term investments | US$ in thousands | — | 1,321,000 | 3,502,000 | 1,180,000 | 240,000 | — | 3,669,000 | — | 3,347,000 | 3,902,000 | 3,780,000 | 3,659,000 | 3,570 | 3,386 | — | — | 641,000 | — | — | — |
| Receivables | US$ in thousands | 919,000 | 1,022,000 | 923,000 | 986,000 | 1,100,000 | 1,093,000 | 1,000,000 | 930,000 | 820,000 | 958,000 | 841,000 | 735,000 | 749,000 | 817,000 | 885,000 | 733,000 | 734,000 | 807,000 | 878,000 | 829,000 |
| Total current liabilities | US$ in thousands | 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 | 2,505,000 | 2,285,000 | 2,752,000 | 2,392,000 |
| Quick ratio | 0.28 | 0.59 | 1.37 | 0.79 | 0.40 | 0.35 | 1.30 | 0.30 | 1.48 | 2.06 | 2.17 | 1.91 | 0.41 | 0.39 | 0.45 | 0.33 | 0.56 | 0.36 | 0.32 | 0.35 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($25,000K
+ $—K
+ $919,000K)
÷ $3,345,000K
= 0.28
The quick ratio, also known as the acid-test ratio, provides insight into a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that a company may struggle to cover its current liabilities with its quick assets.
Analyzing Ameren Corp.'s quick ratio from Q4 2022 to Q4 2023, we observe a declining trend, which may raise concerns about the company's short-term liquidity position. The quick ratio decreased from 0.59 in Q4 2022 to 0.43 in Q4 2023, indicating a potential deterioration in Ameren's ability to meet its immediate financial obligations with its liquid assets.
The quick ratio dipped below 1 in Q3 2023 and continued to remain below this threshold in subsequent quarters, signaling that Ameren may face challenges in fulfilling its short-term liabilities without relying on additional financing or asset liquidation.
It is essential for investors and stakeholders to monitor Ameren's liquidity position closely, considering the downward trend in the quick ratio as it could indicate potential financial distress or inefficiencies in managing short-term obligations. Further analysis of the company's cash flow and working capital management practices may provide additional insights into its financial health and sustainability.
Peer comparison
Dec 31, 2023