The AES Corporation (AES)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 Jun 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
Inventory turnover 16.80 15.32 14.89 15.63 14.28 12.77 13.44 12.03 9.54 9.80 10.70 12.76 13.96 13.64 16.60 15.93 15.11 15.16 14.52 16.50
Receivables turnover 7.09 6.58 8.25 7.78 8.44 7.40 7.57 7.00 6.62 6.90 7.01 7.46 6.95 7.81 7.60 7.42 6.72 6.79 6.80 6.83
Payables turnover 6.02 5.04 5.27 4.84 4.62 6.21 6.57 6.90 5.82 5.80 5.53 6.82 7.31 7.76 7.79 8.54 6.03 6.51 6.06 7.12
Working capital turnover — — — — — — — 15.00 10.95 7.14 12.57 29.20 17.85 10.59 8.75 8.19 185.77 88.25 18.55 30.96

The AES Corporation's activity ratios show the efficiency of the company in managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover: The trend in inventory turnover indicates how many times the company sells and replaces its inventory during a specific period. The ratio has been fluctuating, with a general decrease from a high in early 2020 to a low in mid-2022, before starting to rise again by the end of 2024. The current ratio of 16.80 suggests that inventory is turning over approximately 16.8 times a year.

2. Receivables Turnover: This ratio measures how efficiently the company collects on its credit sales. The data showcases some variation in receivables turnover over the years, ranging from 6.58 to 8.44. A higher turnover ratio generally indicates a shorter time taken by the company to collect its receivables.

3. Payables Turnover: Payables turnover indicates how efficiently the company pays off its suppliers. The trend has shown a declining pattern, dropping from 8.54 in early 2021 to 6.02 by the end of 2024. A lower ratio may suggest that the company is taking longer to pay its suppliers.

4. Working Capital Turnover: This ratio demonstrates how well the company utilizes its working capital to generate sales. The activity level of working capital turnover varies significantly throughout the periods provided, indicating fluctuations in the efficient utilization of working capital. The company experienced a significant increase in working capital turnover in late 2020, followed by varied performance in subsequent periods.

In conclusion, analyzing these activity ratios provides insights into The AES Corporation's efficiency in managing its inventory, receivables, payables, and working capital, which are crucial aspects of its operational performance and financial health.

Average number of days

Dec 31, 2024 Sep 30, 2024 Jun 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
Days of inventory on hand (DOH) days 21.72 23.83 24.51 23.36 25.57 28.59 27.15 30.35 38.24 37.23 34.10 28.60 26.15 26.75 21.99 22.91 24.15 24.08 25.13 22.12
Days of sales outstanding (DSO) days 51.46 55.50 44.26 46.93 43.25 49.34 48.19 52.18 55.14 52.91 52.09 48.94 52.48 46.75 48.04 49.19 54.33 53.77 53.70 53.44
Number of days of payables days 60.59 72.48 69.29 75.45 78.97 58.80 55.53 52.86 62.71 62.98 65.96 53.54 49.92 47.06 46.85 42.73 60.56 56.04 60.19 51.29

The Days of Inventory on Hand (DOH) ratio for The AES Corporation has shown some fluctuation over the past few years, ranging from a low of 21.72 days to a high of 38.24 days. In general, an increase in this ratio may indicate inefficiencies in managing inventory levels, potentially tying up more capital in inventory.

The Days of Sales Outstanding (DSO) ratio, which measures how long it takes for the company to collect payments from its customers, has also varied over time for AES Corporation. It has ranged from 43.25 days to 55.50 days. A higher DSO could imply potential issues with collecting receivables promptly, impacting cash flow.

On the other hand, the Number of Days of Payables ratio, which reflects how long the company takes to pay its suppliers, has also fluctuated for AES Corporation. It has varied from 42.73 days to 78.97 days. A longer payables period may indicate a more favorable position for the company, allowing it to hold onto cash longer before making payment to suppliers.

Overall, analyzing these activity ratios together can provide insights into The AES Corporation's operational efficiency, working capital management, and potential cash flow challenges. It is important for the company to closely monitor and manage these ratios to maintain a healthy balance between inventory, receivables, and payables.

Long-term

Dec 31, 2024 Sep 30, 2024 Jun 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
Fixed asset turnover 0.37 0.38 0.40 0.39 0.42 0.46 0.50 0.54 0.55 0.57 0.57 0.56 0.56 0.48 0.46 0.44 0.42 0.43 0.42 0.44
Total asset turnover 0.26 0.24 0.26 0.27 0.28 0.30 0.31 0.33 0.33 0.33 0.33 0.33 0.34 0.31 0.30 0.28 0.28 0.28 0.28 0.29

The Fixed Asset Turnover ratio for The AES Corporation has shown a fluctuating trend over the years. It started at 0.44 in March 2020, declined to 0.42 by June 2020, and then slightly increased to 0.46 by June 2021. The ratio continued to improve reaching 0.57 by June 2022, before dropping to 0.37 by December 2024. This indicator demonstrates how efficiently the company is generating revenues from its fixed assets, with higher values indicating better asset utilization.

On the other hand, the Total Asset Turnover ratio, which measures how effectively the company is using all its assets to generate revenue, also depicted a mixed pattern. Starting at 0.29 in March 2020, the ratio has had its peaks and troughs throughout the years, reaching a high of 0.34 in December 2021 before declining to 0.26 by June 2024. A lower Total Asset Turnover may indicate inefficiencies in asset utilization or potential underperformance.

Overall, analyzing both ratios provides insights into the company's operational efficiency and asset management strategies, highlighting the importance of a balanced approach to maintaining and utilizing both fixed and total assets effectively for revenue generation.