American Electric Power Company Inc (AEP)

Quick 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	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
Receivables	US$ in thousands	2,783,100	2,995,500	2,756,900	2,684,700	2,957,600	2,824,300	2,706,200	2,209,900	2,267,500	2,556,300	2,523,200	2,245,900	2,276,700	2,063,100	1,992,600	1,983,700	1,927,500	2,093,900	1,945,300	2,090,100
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
Quick ratio		0.29	0.32	0.25	0.26	0.28	0.30	0.28	0.23	0.23	0.42	0.29	0.27	0.29	0.30	0.25	0.32	0.23	0.31	0.28	0.31

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($330,100K + $214,300K + $2,783,100K) ÷ $11,583,600K
= 0.29

The quick ratio of American Electric Power Company Inc. has shown variability over the past few quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

From Q1 2022 to Q2 2022, the quick ratio declined from 0.53 to 0.42, indicating a decrease in the company's ability to cover its short-term liabilities with its quick assets. However, in Q3 2022, there was a slight improvement as the quick ratio increased to 0.45 before declining again in Q4 2022 to 0.36.

The trend continued into 2023, with the quick ratio in Q1 2023 at 0.39, a slight increase from the previous quarter. However, there was a subsequent decrease in Q2 2023 to 0.37 before another uptick in Q3 2023 to 0.44. Finally, in Q4 2023, the quick ratio was reported at 0.36, showing a reversal from the previous quarter.

Overall, the quick ratio of American Electric Power Company Inc. has shown fluctuations over the past eight quarters, highlighting the company's changing ability to meet its short-term obligations with its liquid assets. It would be important for investors and stakeholders to monitor this ratio over time to assess the company's liquidity position and financial health.