American Electric Power Co Inc (AEP)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 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 Dec 31, 2019
Inventory turnover 2.77 0.51 0.45 0.40 0.52 0.55 0.69 0.79 0.84 0.83 0.88 0.84 0.85 0.68 0.61 0.58 0.64 0.63 0.67 0.66
Receivables turnover 6.49 6.73 7.09 6.82 6.44 7.06 7.35 6.64 6.66 6.62 7.74 7.41 6.39 6.26 6.88 6.55 7.23 7.61 7.69 8.07
Payables turnover 1.80 0.38 0.40 0.37 0.40 0.38 0.44 0.38 0.42 0.42 0.50 0.41 0.52 0.49 0.45 0.45 0.49 0.50 0.50 0.37
Working capital turnover — — — — — — — — — — — — — — — — — — — —

American Electric Power Co Inc's activity ratios show the following trends:

1. Inventory turnover: The company's inventory turnover ratio fluctuated over the years, ranging from 0.40 to 2.77. The ratio hit a peak in December 2024, indicating a significant improvement in inventory management efficiency compared to prior periods.

2. Receivables turnover: American Electric Power Co Inc's receivables turnover ratio displayed slight variability over the years, with values ranging from 6.26 to 7.74. The company's ability to collect its outstanding receivables improved towards the end of the period.

3. Payables turnover: The payables turnover ratio fluctuated within a relatively narrow range, varying between 0.37 and 1.80. The sudden spike in payables turnover in December 2024 suggests a substantial increase in the speed at which the company pays its suppliers.

4. Working capital turnover: The data indicates that working capital turnover information is not available for the specified periods, as denoted by "—". This lack of data may hinder a comprehensive assessment of the company's efficiency in utilizing its working capital to generate revenue.

In conclusion, American Electric Power Co Inc's activity ratios reflect fluctuations in operational efficiency and working capital management over the years, with notable improvements in inventory turnover and payables turnover observed in certain periods.

Average number of days

Dec 31, 2024 Sep 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 Dec 31, 2019
Days of inventory on hand (DOH) days 131.72 719.96 808.61 901.71 701.77 668.40 529.55 462.59 435.69 437.94 414.23 433.34 428.04 534.72 599.41 625.85 569.73 576.06 548.72 555.53
Days of sales outstanding (DSO) days 56.22 54.23 51.50 53.51 56.69 51.68 49.65 54.97 54.78 55.13 47.16 49.29 57.10 58.35 53.05 55.70 50.46 47.94 47.47 45.21
Number of days of payables days 202.56 967.64 909.37 975.11 921.52 967.31 824.67 948.84 860.71 873.35 725.93 900.06 698.64 738.64 803.00 816.81 746.09 732.79 731.10 991.04

American Electric Power Co Inc's activity ratios show fluctuations over the years.

- Days of Inventory on Hand (DOH) decreased from 555.53 days in December 2019 to 131.72 days in December 2024, indicating a significant improvement in managing inventory levels efficiently.

- Days of Sales Outstanding (DSO) varied during the period, with a decreasing trend from 45.21 days in December 2019 to 56.22 days in December 2024. This indicates that the company has been collecting its receivables at a slower pace over the years.

- Number of Days of Payables ranged from 202.56 days in December 2024 to 991.04 days in December 2019. This metric suggests that the company took more time to pay its suppliers in 2019 but improved significantly by 2024.

Overall, American Electric Power Co Inc seemed to have made improvements in managing its inventory efficiently and in paying its suppliers more promptly. However, the collection of receivables indicated a slower pace over the years, which may need further attention for optimization.

Long-term

Dec 31, 2024 Sep 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 Dec 31, 2019
Fixed asset turnover 27.58 0.25 0.25 33.64 0.25 0.26 0.27 0.27 0.27 0.26 0.25 0.25 0.25 0.24 0.24 0.23 0.24 0.25 0.25 0.26
Total asset turnover 0.19 0.20 0.20 0.20 0.20 0.20 0.21 0.21 0.21 0.20 0.19 0.19 0.19 0.19 0.19 0.18 0.19 0.20 0.20 0.21

The Fixed Asset Turnover for American Electric Power Co Inc has shown relatively stable performance over the past few years, ranging between 0.23 to 0.27. However, there was a significant anomaly on December 31, 2023, where the ratio spiked to an unusually high value of 33.64. This anomaly may indicate a possible error or irregularity in the financial data for that period.

On the other hand, the Total Asset Turnover ratio for the company has remained relatively steady between 0.18 to 0.21 from December 31, 2019, to December 31, 2024. This signifies that the company is generating revenue efficiently in relation to its total assets over time.

Overall, the Fixed Asset Turnover and Total Asset Turnover ratios suggest that American Electric Power Co Inc is effectively utilizing its assets to generate sales, with some fluctuations in the Fixed Asset Turnover ratio that may require further investigation.