American Electric Power Co Inc (AEP)

Current 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
Total current assets	US$ in thousands	5,788,800	6,020,800	5,849,600	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
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
Current ratio		0.44	0.57	0.54	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

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,788,800K ÷ $13,009,300K
= 0.44

The current ratio of American Electric Power Co Inc has shown variability over the past five years, ranging from a low of 0.40 to a high of 0.79. This ratio indicates the company's ability to meet its short-term obligations with its current assets.

The trend in the current ratio demonstrates fluctuations in the company's liquidity position. The ratio increased steadily from December 31, 2019, to September 30, 2021, indicating an improvement in the company's ability to cover its short-term liabilities with current assets.

However, from December 31, 2021, to March 31, 2024, the current ratio fluctuated within a narrower range, showing some inconsistency in the company's liquidity management. Notably, the ratio peaked at 0.79 on September 30, 2022, suggesting a strengthened ability to cover short-term obligations.

Overall, the current ratio of American Electric Power Co Inc has exhibited fluctuating trends, reflecting changes in the company's liquidity position over the past five years. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's ability to meet its short-term financial obligations effectively.