The AES Corporation (AES)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 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 | 11.23 | 10.64 | 10.36 | 10.35 |
The solvency ratios for AES Corp. over the past eight quarters show a somewhat fluctuating trend.
The Debt-to-assets ratio has varied between 0.59 and 0.64, indicating that the company's proportion of assets funded by debt has been relatively stable, with a slight increase in Q2 and Q3 of 2023.
The Debt-to-capital ratio has ranged from 0.87 to 0.92, demonstrating that debt represents a significant portion of the company's capital structure. The ratio has remained relatively high and consistent throughout the quarters.
The Debt-to-equity ratio has shown more volatility, fluctuating between 6.51 and 10.80. This ratio indicates the extent to which the company relies on debt financing versus equity financing. The increase in Q4 2023 suggests a higher level of debt financing relative to equity compared to the previous quarters.
The Financial leverage ratio, which measures the extent of a company's financial leverage, has fluctuated between 11.08 and 18.01. This ratio has shown an increasing trend, indicating a higher degree of financial risk and leverage at the end of the period.
Overall, the solvency ratios of AES Corp. suggest a company that relies significantly on debt to finance its operations and investments, with fluctuations in the levels of debt relative to assets, capital, and equity over the past eight quarters. The increasing trend in the financial leverage ratio signals a potential increase in financial risk for the company.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 1.62 | 1.97 | 1.87 | 2.22 |
Interest coverage is a key financial ratio that provides insight into a company's ability to meet its interest obligations. AES Corp.'s interest coverage ratio has been relatively stable over the past eight quarters, ranging from 2.89 to 3.53. A ratio above 1 indicates that the company is generating enough operating income to cover its interest expenses.
In the most recent quarter (Q4 2023), AES Corp.'s interest coverage ratio was 2.89, which indicates that the company earned $2.89 in operating income for every $1 in interest expense. While the ratio is above 1, suggesting that the company is meeting its interest obligations, it has decreased compared to the previous quarter (Q3 2023), where the ratio was 3.01.
Overall, AES Corp.'s interest coverage ratio remains within a healthy range, indicating that the company has been effectively managing its interest expenses. However, a downward trend in the ratio warrants further monitoring to ensure that the company continues to generate sufficient operating income to cover its interest payments in the future.