The AES Corporation (AES)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,278,000 | 12,284,000 | 12,429,000 | 12,514,000 | 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 |
| Total current assets | US$ in thousands | 6,831,000 | 10,712,000 | 9,732,000 | 7,170,000 | 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 |
| Total current liabilities | US$ in thousands | 8,571,000 | 12,375,000 | 9,823,000 | 9,211,000 | 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 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (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 exhibited significant fluctuations over the provided period. The ratio measures how efficiently the company utilizes its working capital to generate sales.
From March 31, 2020, to December 31, 2021, the working capital turnover improved, indicating that the company was able to generate more revenue using its working capital efficiently. This trend suggests effective management of current assets and liabilities during this period.
However, starting from March 31, 2021, the working capital turnover ratio decreased, indicating a potential deterioration in the company's ability to generate sales with its working capital. The substantial drop in the ratio to single digits by June 30, 2021, and September 30, 2021, suggests a decrease in liquidity and working capital efficiency.
The ratio fluctuated between 7.14 and 29.20 from September 30, 2021, to March 31, 2023, showing inconsistency in how effectively the company was managing its working capital during this period.
The lack of data for the second half of 2023 and beyond makes it challenging to assess the current trend. Therefore, it is essential for stakeholders to monitor future financial reports to understand the company's working capital management better and its impact on overall financial performance.