The AES Corporation (AES)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,278,000 | 12,668,000 | 12,617,000 | 11,141,000 | 9,660,000 |
| Total current assets | US$ in thousands | 6,831,000 | 6,649,000 | 7,643,000 | 5,356,000 | 5,414,000 |
| Total current liabilities | US$ in thousands | 8,571,000 | 9,731,000 | 6,491,000 | 4,732,000 | 5,362,000 |
| Working capital turnover | — | — | 10.95 | 17.85 | 185.77 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $12,278,000K ÷ ($6,831,000K – $8,571,000K)
= —
The working capital turnover ratio for The AES Corporation has shown a significant decrease over the years. In December 2020, the ratio was reported at a high of 185.77, indicating that the company effectively used its working capital to generate revenue. However, this ratio dropped to 17.85 by December 2021 and further declined to 10.95 by December 2022. The absence of data for December 2023 and December 2024 makes it challenging to ascertain the trend. Overall, the decreasing trend in the working capital turnover ratio over the observed period suggests a potential inefficiency in utilizing working capital to generate sales. It may be essential for the company to review its working capital management strategies to improve efficiency and optimize its financial performance.