The AES Corporation (AES)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 0.80 | 0.87 | 0.99 | 0.78 | 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 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,831,000K ÷ $8,571,000K
= 0.80
The current ratio of The AES Corporation has shown fluctuation over the past few years, indicating varying levels of liquidity and ability to meet short-term obligations.
The ratio increased from 1.06 on March 31, 2020, to a peak of 1.29 on September 30, 2022, suggesting an improvement in the company's short-term financial position. However, the current ratio subsequently declined to 0.80 on December 31, 2024.
A current ratio above 1 generally indicates that the company can cover its short-term liabilities with its current assets. In this case, the downward trend in the current ratio towards the latter part of the period may raise concerns about the company's liquidity and ability to meet its short-term obligations.
It is essential for stakeholders to further investigate the reasons behind the decreasing trend in the current ratio to assess the company's overall financial health and liquidity position accurately.