The AES Corporation (AES)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 0.68 | 0.83 | 0.94 | 1.13 | 1.18 | 1.29 | 1.16 | 1.07 | 1.13 | 1.22 | 1.28 | 1.24 | 1.01 | 1.02 | 1.10 | 1.06 | 1.03 | 1.10 | 1.36 | 1.34 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,649,000K ÷ $9,731,000K
= 0.68
The current ratio of AES Corp. has shown a declining trend over the past eight quarters, decreasing from 1.18 in Q4 2022 to 0.68 in Q4 2023. This indicates that the company may be facing challenges in meeting its short-term liabilities with its current assets. A current ratio below 1 suggests that AES Corp. may have difficulties in paying off its short-term obligations using its current assets alone.
However, it is noteworthy that the current ratio improved from Q4 2023 to Q2 2023, reaching a peak of 0.94, before declining again. Despite this improvement, the current ratio remained below 1 for three consecutive quarters. This pattern suggests potential liquidity concerns for AES Corp. and may indicate the need for the company to reassess its current asset management and liquidity positions.
Overall, the fluctuating current ratio of AES Corp. reflects inconsistent liquidity management and the potential need for the company to monitor and strengthen its ability to meet short-term financial obligations.