The AES Corporation (AES)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 1,029,000 | 1,145,000 | 1,169,000 | 1,426,000 |
| Short-term investments | US$ in thousands | 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 | 400,000 | 334,000 | 410,000 | 378,000 |
| Receivables | US$ in thousands | 1,501,000 | 1,725,000 | 1,710,000 | 1,859,000 | 1,906,000 | 1,787,000 | 1,675,000 | 1,523,000 | 1,602,000 | 1,400,000 | 1,374,000 | 1,342,000 | 1,438,000 | 1,404,000 | 1,414,000 | 1,446,000 | 1,610,000 | 1,503,000 | 1,538,000 | 1,564,000 |
| 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 |
| Quick ratio | 0.34 | 0.46 | 0.49 | 0.61 | 0.62 | 0.68 | 0.56 | 0.52 | 0.59 | 0.64 | 0.66 | 0.68 | 0.53 | 0.57 | 0.60 | 0.61 | 0.60 | 0.60 | 0.77 | 0.77 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,426,000K
+ $395,000K
+ $1,501,000K)
÷ $9,731,000K
= 0.34
The quick ratio of AES Corp. has been fluctuating over the past eight quarters, ranging from a low of 0.49 in Q4 2023 to a high of 0.93 in Q3 2022. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets. A ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.
The gradual decline in the quick ratio from Q1 2022 to Q4 2023 suggests that AES Corp. may be facing challenges in maintaining sufficient liquid assets to cover its short-term liabilities. This trend could be a cause for concern for investors and creditors as it indicates potential liquidity risks for the company.
It is important for AES Corp. to closely monitor its quick ratio and take proactive measures to improve its liquidity position, such as increasing its cash reserves or reducing its current liabilities. By enhancing its ability to meet short-term obligations, the company can mitigate financial risks and strengthen its overall financial health.