American Electric Power Co Inc (AEP)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 202,900 | 330,100 | 509,400 | 403,400 | 392,700 |
| Short-term investments | US$ in thousands | 215,400 | 214,300 | 187,600 | 220,400 | 200,800 |
| Receivables | US$ in thousands | 3,037,100 | 2,783,100 | 2,957,600 | 2,267,500 | 2,276,700 |
| Total current liabilities | US$ in thousands | 13,009,300 | 11,583,600 | 13,266,300 | 12,426,700 | 9,926,700 |
| Quick ratio | 0.27 | 0.29 | 0.28 | 0.23 | 0.29 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($202,900K
+ $215,400K
+ $3,037,100K)
÷ $13,009,300K
= 0.27
The quick ratio of American Electric Power Co Inc has shown some fluctuations over the years. As of December 31, 2020, the quick ratio was 0.29, indicating that the company had $0.29 in liquid assets available to cover each $1 of current liabilities. However, by December 31, 2021, the quick ratio had decreased to 0.23, suggesting a potential strain on the company's ability to meet its short-term obligations using its most liquid assets.
Subsequently, there was a slight improvement in the quick ratio to 0.28 by December 31, 2022, and it remained relatively stable at 0.29 by December 31, 2023. However, by December 31, 2024, the quick ratio dropped to 0.27, indicating a potential decrease in the company's short-term liquidity compared to the previous year.
Overall, the trend in American Electric Power Co Inc's quick ratio reflects some volatility, with the company experiencing periods of stronger and weaker liquidity positions. It would be essential for stakeholders to monitor the company's ability to efficiently manage its current liabilities with its liquid assets to ensure financial stability and meet short-term obligations in the future.
Peer comparison
Dec 31, 2024