American Electric Power Company Inc (AEP)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,082,100 | 6,736,600 | 8,041,300 | 7,798,200 | 6,775,500 | 9,320,000 | 9,371,000 | 8,268,000 | 7,809,200 | 5,785,100 | 4,605,800 | 4,258,400 | 4,351,500 | 4,338,200 | 4,273,200 | 5,292,000 | 4,077,800 | 4,166,400 | 4,061,300 | 3,914,800 |
| 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 |
| Current ratio | 0.53 | 0.60 | 0.61 | 0.62 | 0.51 | 0.79 | 0.75 | 0.61 | 0.63 | 0.58 | 0.44 | 0.42 | 0.44 | 0.48 | 0.42 | 0.45 | 0.40 | 0.48 | 0.49 | 0.49 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,082,100K ÷ $11,583,600K
= 0.53
The current ratio of American Electric Power Company Inc. has been fluctuating over the past few quarters. In Q4 2023, the company's current ratio declined to 0.53 from 0.60 in the previous quarter. This may indicate that the company's current assets are decreasing relative to its current liabilities, potentially raising concerns about its short-term liquidity position.
Comparing the current ratio to the same period a year ago, there has been a noticeable decline from 0.65 in Q4 2022 to 0.53 in Q4 2023. This downward trend suggests that the company may be facing challenges in managing its short-term obligations and may need to improve its liquidity position.
Overall, the declining trend in the current ratio of American Electric Power Company Inc. raises questions about its ability to meet its short-term debt obligations and operational expenses. It is essential for the company to closely monitor and manage its current assets and liabilities to ensure financial stability and liquidity in the future.
Peer comparison
Dec 31, 2023