The AES Corporation (AES)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 13.01 | 14.88 | 15.09 | 16.22 | 18.01 | 15.53 | 16.66 | 16.66 | 15.74 | 11.08 | 12.04 | 11.38 | 11.78 | 10.06 | 10.64 | 10.42 | 13.14 | 17.10 | 14.04 | 13.45 |
The solvency ratios of The AES Corporation indicate a consistently low level of debt relative to its assets, capital, and equity throughout the reporting periods from March 31, 2020, to December 31, 2024. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all remained at 0.00, suggesting that the company has minimal debt obligations compared to its total assets, capital, and equity.
However, the Financial leverage ratio shows some fluctuations over the years, ranging from 10.06 to 18.01. This ratio measures the extent to which a company is using debt to finance its operations and growth. The variations in the Financial leverage ratio indicate changes in the company's use of debt to generate returns for its stakeholders.
Overall, the low debt levels in relation to assets, capital, and equity suggest that The AES Corporation has maintained a conservative approach to financial leverage and is managing its solvency effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.11 | 1.78 | 1.63 | 1.52 | 1.39 | 0.76 | 0.94 | 0.80 | 0.75 | 0.72 | 0.61 | 0.77 | 0.41 | 1.80 | 0.83 | 0.89 | 1.25 | 0.76 | 1.60 | 1.61 |
The AES Corporation's interest coverage ratio has fluctuated over the periods indicated in the data. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt with its earnings before interest and taxes (EBIT). A ratio below 1 indicates that the company is not generating enough EBIT to cover its interest expenses.
Between March 31, 2020, and June 30, 2022, The AES Corporation had relatively low interest coverage ratios, ranging from 0.61 to 1.80. These low ratios suggest that the company may have been struggling to cover its interest expenses with its operating income during this period.
However, from December 31, 2022, to December 31, 2024, the interest coverage ratio improved steadily, increasing from 0.75 to 2.11. This indicates that the company's ability to cover its interest payments with its operating income improved over these periods.
Overall, The AES Corporation has shown variations in its interest coverage ratio over time, reflecting changes in its financial performance and ability to service its debt obligations with its operating earnings. Investors and stakeholders should continue to monitor the company's interest coverage ratio as a key indicator of its financial health and debt repayment capacity.