American Electric Power Co Inc (AEP)

Cash ratio

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
Cash and cash equivalents US$ in thousands 202,900 245,800 230,700 330,100 353,300 304,900 343,500 509,400 522,200 575,300 675,600 403,400 1,372,700 312,700 273,200 392,700 409,700 348,800 1,554,600 246,800
Short-term investments US$ in thousands 215,400 228,600 217,000 214,300 211,000 202,500 194,600 187,600 202,200 192,000 208,500 220,400 218,400 221,700 199,100 200,800 209,000 192,300 185,200 202,700
Total current liabilities US$ in thousands 13,009,300 10,647,600 10,906,600 11,583,600 11,278,100 13,267,100 12,621,700 13,266,300 11,836,400 12,448,000 13,568,600 12,426,700 9,954,000 10,428,600 10,220,100 9,926,700 9,047,200 10,122,000 11,654,700 10,299,100
Cash ratio 0.03 0.04 0.04 0.05 0.05 0.04 0.04 0.05 0.06 0.06 0.07 0.05 0.16 0.05 0.05 0.06 0.07 0.05 0.15 0.04

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($202,900K + $215,400K) ÷ $13,009,300K
= 0.03

The cash ratio of American Electric Power Co Inc has shown fluctuations over the periods analyzed. As of December 31, 2019, the company had a cash ratio of 0.04, indicating that for every dollar of current liabilities, the company had $0.04 in cash.

The ratio increased significantly to 0.15 as of March 31, 2020, suggesting a stronger liquidity position. However, this was followed by a decrease to 0.05 as of June 30, 2020, showing a decline in the company's ability to cover short-term obligations with cash.

Subsequently, the cash ratio improved to 0.07 as of September 30, 2020, but then decreased to 0.06 by December 31, 2020. The ratio remained stable around 0.05 during the first half of 2021 and increased to 0.16 by September 30, 2021, indicating a notable improvement in liquidity.

However, the ratio declined to 0.05 by December 31, 2021, and remained relatively consistent at around 0.05 in the subsequent quarters up to March 31, 2024.

Overall, the cash ratio of American Electric Power Co Inc reflects varying levels of liquidity and ability to meet short-term obligations with cash reserves over the analyzed periods. Investors and analysts may continue to monitor this ratio to assess the company's liquidity position and financial health.