The AES Corporation (AES)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,524,000 | 1,919,000 | 1,773,000 | 1,994,000 | 1,426,000 | 1,765,000 | 1,322,000 | 1,441,000 | 1,374,000 | 1,553,000 | 1,075,000 | 1,056,000 | 943,000 | 1,411,000 | 1,213,000 | 1,886,000 | 1,089,000 | 1,505,000 | 1,417,000 | 1,544,000 |
| Short-term investments | US$ in thousands | 79,000 | 62,000 | 61,000 | 394,000 | 395,000 | 538,000 | 713,000 | 822,000 | 730,000 | 671,000 | 595,000 | 440,000 | 232,000 | 170,000 | 282,000 | 187,000 | 335,000 | 384,000 | 422,000 | 328,000 |
| 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 |
| Cash ratio | 0.19 | 0.16 | 0.19 | 0.26 | 0.19 | 0.26 | 0.27 | 0.33 | 0.32 | 0.38 | 0.28 | 0.26 | 0.25 | 0.34 | 0.34 | 0.41 | 0.27 | 0.33 | 0.34 | 0.34 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,524,000K
+ $79,000K)
÷ $8,571,000K
= 0.19
The cash ratio of The AES Corporation fluctuated over the years based on the provided data. It remained relatively stable around the range of 0.30 to 0.40 from March 2020 to March 2023. However, there was a noticeable decrease in the cash ratio from December 2023 to December 2024, dropping to as low as 0.16.
The cash ratio measures a company's ability to cover short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of financing.
The decreasing trend in the cash ratio towards the end of the available data period may raise concerns about The AES Corporation's liquidity position. It is important to monitor this trend closely in future periods to ensure the company maintains an adequate level of cash reserves to meet its short-term financial obligations.