American Electric Power Company Inc (AEP)

Cash 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 and cash equivalents	US$ in thousands	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	348,800	210,500	227,700
Short-term investments	US$ in thousands	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	198,400	175,700	168,900
Total current liabilities	US$ in thousands	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	8,611,200	8,357,100	7,990,600
Cash ratio		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	0.06	0.05	0.05

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($330,100K + $214,300K) ÷ $11,583,600K
= 0.05

The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. For American Electric Power Company Inc., the cash ratio has fluctuated over the past eight quarters, ranging from a low of 0.15 to a high of 0.39.

In Q4 2023, the cash ratio was 0.15, indicating that the company had $0.15 in cash and cash equivalents for every $1 of short-term liabilities. This suggests that the company may have had limited immediate liquidity to meet its short-term obligations.

In comparison, Q1 2022 had the highest cash ratio of 0.39, signaling a stronger cash position relative to short-term liabilities. This may indicate improved liquidity and financial stability for the company during that period.

Overall, the fluctuations in the cash ratio for American Electric Power Company Inc. suggest variations in its ability to cover short-term obligations with available cash resources. Further analysis of the company's cash management practices and liquidity trends may help provide insights into its financial health and operational efficiency.