The AES Corporation (AES)
Quick 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 | 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 |
| Receivables | US$ in thousands | 1,731,000 | 1,868,000 | 1,507,000 | 1,609,000 | 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 |
| 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 |
| Quick ratio | 0.39 | 0.31 | 0.34 | 0.43 | 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 |
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 has experienced fluctuations over the analyzed period. The company's quick ratio ranged from a low of 0.31 as of September 30, 2024, to a high of 0.68 as of March 31, 2022, and September 30, 2022.
A quick ratio below 1 suggests that the company may have difficulty meeting its short-term obligations using its most liquid assets. The declining trend in the quick ratio from 2022 to 2024 indicates a potential weakening in the company's ability to cover its current liabilities with its quick assets.
The management of The AES Corporation should carefully monitor this trend and consider strategies to improve liquidity levels to ensure the company's financial health and ability to meet short-term obligations in a timely manner.