The AES Corporation (AES)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,668,000 | 12,760,000 | 12,953,000 | 13,004,000 | 12,617,000 | 12,327,000 | 11,736,000 | 11,358,000 | 11,141,000 | 10,931,000 | 10,440,000 | 9,957,000 | 9,660,000 | 9,531,000 | 9,611,000 | 9,877,000 | 10,189,000 | 10,380,000 | 10,592,000 | 10,646,000 |
| Total current assets | US$ in thousands | 6,649,000 | 7,317,000 | 7,205,000 | 7,643,000 | 7,643,000 | 7,628,000 | 6,923,000 | 6,142,000 | 5,356,000 | 5,690,000 | 5,530,000 | 6,237,000 | 5,414,000 | 5,885,000 | 5,966,000 | 5,751,000 | 5,231,000 | 5,470,000 | 5,517,000 | 5,855,000 |
| Total current liabilities | US$ in thousands | 9,731,000 | 8,819,000 | 7,628,000 | 6,776,000 | 6,491,000 | 5,902,000 | 5,989,000 | 5,753,000 | 4,732,000 | 4,658,000 | 4,337,000 | 5,021,000 | 5,362,000 | 5,777,000 | 5,448,000 | 5,432,000 | 5,096,000 | 4,991,000 | 4,042,000 | 4,357,000 |
| 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 | 75.47 | 21.67 | 7.18 | 7.11 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $12,668,000K ÷ ($6,649,000K – $9,731,000K)
= —
The working capital turnover for AES Corp. experienced fluctuations over the past eight quarters. The ratio indicates how efficiently the company is using its working capital to generate sales revenue. In Q1 2023, the working capital turnover was 15.00, suggesting that AES Corp. was able to generate $15 in sales for every dollar of working capital during that period. This was a significant improvement compared to the previous quarters, where the ratios ranged from 7.14 to 12.57.
The sharp increase in Q1 2023 may be attributed to improvements in managing working capital components such as accounts receivable, inventory, and accounts payable. A higher working capital turnover ratio indicates that the company is managing its working capital more effectively and converting it into sales at a faster rate.
It is important to note that the working capital turnover ratio can vary across industries, so it is essential to compare AES Corp.'s ratio with industry benchmarks or competitors for a more meaningful analysis. Overall, a higher working capital turnover ratio is favorable as it signifies operational efficiency and effective utilization of resources.