Quick Ratio
Higher than 36% of Utilities sector peers
Updated 35h ago
Sector Performance
36th percentileAEP
0.28x
Sector Median
0.50x
Sector Avg
0.50x
Deep Analysis
The quick ratio measures a company's ability to pay short-term debts using its most liquid assets (cash, marketable securities, receivables).
A current value of 0.28x means American Electric Power has $0.28 of these liquid assets for every $1 of current liabilities. This sits below the utilities sector median of 0.34x, placing the company at the 44th percentile among its peers. The metric has been stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. A low ratio combined with a flat trend signals consistent but contained liquidity risk — the company is not improving its position, but it is also not deteriorating. This steady, below-median profile neither strengthens nor challenges the overall NEUTRAL verdict, as the quick ratio simply confirms the lack of notable upside or alarm.
Frequently Asked Questions
What does the Quick Ratio tell investors about AEP?
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
How is the Quick Ratio calculated?
Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.
How does AEP's Quick Ratio compare to its sector?
AEP's Quick Ratio of 0.28x compares to a Utilities sector median of 0.50x, placing it in the 36th percentile.
Who are AEP's closest peers by Quick Ratio?
The closest Utilities peers by Quick Ratio include: AES (0.39x), ATO (0.61x), PPL (0.72x), FLNC (0.73x), PNW (0.26x).
The Formula
(Cash + Receivables) / Current Liabilities
Why It Matters
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
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0.28x
Sector Median
0.50x
Sector Avg
0.50x
How AEP's Quick Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.