AEP Current Ratio Analysis
Higher than 0% of Utilities sector peers
Updated 3963h ago·SEC filings & market data
Key Takeaway
A current ratio of 0.53x means American Electric Power has only $0.53 in current assets (cash, receivables, inventory) for every $1.00 of short-term liabilities due within a year, indicating tight near-term liquidity.
Sector Performance
0th percentileAEP
0.53x
Sector Median
0.73x
Sector Avg
0.90x
Prior Period
0.45x(Apr 2026)
Deep Analysis
A current ratio of 0.53x means American Electric Power has only $0.53 in current assets (cash, receivables, inventory) for every $1.00 of short-term liabilities due within a year, indicating tight near-term liquidity.
This stands well below the sector median of 0.86x and places the company at the 9th percentile among utility peers, meaning 91% of competitors have a higher current ratio. No historical trend data is available — year-over-year change, quarter-over-quarter change, and the last eight quarters are all marked N/A. Without a trend to assess direction, the combination of a low absolute level and no trend information implies elevated short-term financial risk, as the company has minimal cushion to cover upcoming obligations. This metric contradicts the overall NEUTRAL verdict because the weak liquidity position suggests a worse risk profile than a neutral assessment would typically imply.
Frequently Asked Questions
What does the Current Ratio tell investors about AEP?
Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.
How is the Current Ratio calculated?
Current Ratio is calculated as: Current Assets / Current Liabilities.
How does AEP's Current Ratio compare to its sector?
AEP's Current Ratio of 0.53x compares to a Utilities sector median of 0.73x, placing it in the 0th percentile.
Who are AEP's closest peers by Current Ratio?
The closest Utilities peers by Current Ratio include: AES (0.73x), LNT (0.69x), AEE (0.62x), PNW (0.60x), PEG (0.88x).
Learn More About Current Ratio
The Formula
Current Assets / Current Liabilities
Why It Matters
Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.
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0.53x
Sector Median
0.73x
Sector Avg
0.90x
How AEP's Current Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.