The AES Corporation (AES)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,524,000 | 1,426,000 | 1,374,000 | 943,000 | 1,089,000 |
| Short-term investments | US$ in thousands | 79,000 | 395,000 | 730,000 | 232,000 | 335,000 |
| Receivables | US$ in thousands | 1,731,000 | 1,501,000 | 1,906,000 | 1,602,000 | 1,438,000 |
| Total current liabilities | US$ in thousands | 8,571,000 | 9,731,000 | 6,491,000 | 4,732,000 | 5,362,000 |
| Quick ratio | 0.39 | 0.34 | 0.62 | 0.59 | 0.53 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,524,000K
+ $79,000K
+ $1,731,000K)
÷ $8,571,000K
= 0.39
The quick ratio of The AES Corporation shows an upward trend from 0.53 in December 2020 to 0.62 in December 2022 before declining to 0.39 by December 2024. This ratio measures the company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations. The increasing trend from 2020 to 2022 suggests an improvement in the company's liquidity position, but the decline in 2023 and 2024 may indicate potential challenges in liquidity management during those periods. It is important for investors and stakeholders to closely monitor this ratio to assess the company's financial health and liquidity management.