American Retained Earnings vs Short Long Term Debt Analysis

AEP Stock

USD 97.86 0.22 0.22%

American Electric financial indicator trend analysis is way more than just evaluating American Electric Power prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether American Electric Power is a good investment. Please check the relationship between American Electric Retained Earnings and its Short Long Term Debt accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Electric Power. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.

Retained Earnings vs Short Long Term Debt

Retained Earnings vs Short Long Term Debt Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of American Electric Power Retained Earnings account and Short Long Term Debt. At this time, the significance of the direction appears to have strong relationship.

The correlation between American Electric's Retained Earnings and Short Long Term Debt is 0.77. Overlapping area represents the amount of variation of Retained Earnings that can explain the historical movement of Short Long Term Debt in the same time period over historical financial statements of American Electric Power, assuming nothing else is changed. The correlation between historical values of American Electric's Retained Earnings and Short Long Term Debt is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Retained Earnings of American Electric Power are associated (or correlated) with its Short Long Term Debt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Short Long Term Debt has no effect on the direction of Retained Earnings i.e., American Electric's Retained Earnings and Short Long Term Debt go up and down completely randomly.

Correlation Coefficient

0.77

Relationship Direction	Positive
Relationship Strength	Significant

View All Relationships

Retained Earnings

The cumulative amount of net income that a company retains for reinvestment in its operations, rather than distributing it to shareholders as dividends.

Short Long Term Debt

The total of a company's short-term and long-term borrowings.

Most indicators from American Electric's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into American Electric Power current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Electric Power. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.

As of 11/22/2024, Enterprise Value is likely to grow to about 89.7 B, while Selling General Administrative is likely to drop slightly above 3.2 B.

	2021	2022	2023	2024 (projected)
Gross Profit	10.2B	11.3B	12.4B	8.1B
Total Revenue	16.8B	19.6B	19.0B	13.9B

Gross Profit Total Revenue

American Electric fundamental ratios Correlations

	Common Stock Shares Outstanding	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Accounts Payable	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Total Equity	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Property Plant And Equipment Gross	Total Current Assets	Short Term Debt	Common Stock	Current Deferred Revenue
Common Stock Shares Outstanding		0.79	0.44	0.55	0.69	0.85	0.75	0.43	0.57	0.72	0.49	0.8	0.26	0.77	0.84	0.97	0.79	0.62	0.17	-0.34	0.78	0.29	0.56	0.69	0.99	-0.52
Total Assets	0.79		0.79	0.48	0.94	0.99	0.99	0.78	0.84	0.91	0.81	1.0	0.04	0.71	0.84	0.82	1.0	0.53	0.54	0.22	1.0	0.56	0.77	0.92	0.77	-0.52
Short Long Term Debt Total	0.44	0.79		0.33	0.83	0.73	0.78	1.0	0.97	0.75	0.8	0.77	-0.01	0.63	0.67	0.56	0.76	0.43	0.61	0.32	0.8	0.79	0.72	0.76	0.5	-0.41
Other Current Liab	0.55	0.48	0.33		0.51	0.5	0.45	0.32	0.47	0.56	0.23	0.48	0.16	0.42	0.31	0.51	0.45	-0.03	0.37	-0.35	0.47	0.38	0.42	0.39	0.58	-0.67
Total Current Liabilities	0.69	0.94	0.83	0.51		0.91	0.92	0.82	0.86	0.93	0.88	0.93	-0.14	0.73	0.82	0.71	0.92	0.36	0.64	0.23	0.95	0.66	0.89	0.97	0.69	-0.48
Total Stockholder Equity	0.85	0.99	0.73	0.5	0.91		0.98	0.72	0.8	0.9	0.74	0.99	0.1	0.71	0.86	0.87	0.99	0.56	0.48	0.16	0.98	0.54	0.74	0.89	0.82	-0.54
Property Plant And Equipment Net	0.75	0.99	0.78	0.45	0.92	0.98		0.77	0.83	0.9	0.79	1.0	0.05	0.63	0.79	0.78	0.99	0.5	0.51	0.27	0.99	0.53	0.71	0.9	0.72	-0.5
Net Debt	0.43	0.78	1.0	0.32	0.82	0.72	0.77		0.97	0.74	0.8	0.77	-0.01	0.63	0.67	0.55	0.76	0.42	0.61	0.32	0.8	0.79	0.72	0.75	0.49	-0.4
Retained Earnings	0.57	0.84	0.97	0.47	0.86	0.8	0.83	0.97		0.82	0.77	0.83	0.06	0.68	0.72	0.67	0.81	0.42	0.57	0.19	0.85	0.77	0.73	0.78	0.63	-0.52
Accounts Payable	0.72	0.91	0.75	0.56	0.93	0.9	0.9	0.74	0.82		0.76	0.9	-0.04	0.59	0.8	0.72	0.88	0.27	0.48	0.13	0.9	0.62	0.77	0.88	0.71	-0.54
Cash	0.49	0.81	0.8	0.23	0.88	0.74	0.79	0.8	0.77	0.76		0.78	-0.34	0.72	0.69	0.51	0.79	0.33	0.69	0.28	0.82	0.52	0.83	0.86	0.5	-0.3
Non Current Assets Total	0.8	1.0	0.77	0.48	0.93	0.99	1.0	0.77	0.83	0.9	0.78		0.07	0.69	0.82	0.83	1.0	0.54	0.51	0.21	1.0	0.53	0.72	0.9	0.77	-0.51
Non Currrent Assets Other	0.26	0.04	-0.01	0.16	-0.14	0.1	0.05	-0.01	0.06	-0.04	-0.34	0.07		0.01	0.05	0.33	0.06	0.39	-0.58	-0.24	0.02	-0.12	-0.33	-0.09	0.27	-0.46
Cash And Short Term Investments	0.77	0.71	0.63	0.42	0.73	0.71	0.63	0.63	0.68	0.59	0.72	0.69	0.01		0.8	0.78	0.68	0.65	0.44	-0.21	0.71	0.45	0.78	0.72	0.81	-0.48
Net Receivables	0.84	0.84	0.67	0.31	0.82	0.86	0.79	0.67	0.72	0.8	0.69	0.82	0.05	0.8		0.88	0.81	0.66	0.34	0.02	0.83	0.6	0.81	0.83	0.84	-0.42
Common Stock Total Equity	0.97	0.82	0.56	0.51	0.71	0.87	0.78	0.55	0.67	0.72	0.51	0.83	0.33	0.78	0.88		0.82	0.71	0.2	-0.23	0.81	0.42	0.58	0.7	0.97	-0.51
Non Current Liabilities Total	0.79	1.0	0.76	0.45	0.92	0.99	0.99	0.76	0.81	0.88	0.79	1.0	0.06	0.68	0.81	0.82		0.55	0.52	0.23	1.0	0.52	0.73	0.9	0.76	-0.5
Inventory	0.62	0.53	0.43	-0.03	0.36	0.56	0.5	0.42	0.42	0.27	0.33	0.54	0.39	0.65	0.66	0.71	0.55		0.0	0.03	0.52	0.31	0.33	0.41	0.61	-0.28
Other Current Assets	0.17	0.54	0.61	0.37	0.64	0.48	0.51	0.61	0.57	0.48	0.69	0.51	-0.58	0.44	0.34	0.2	0.52	0.0		0.38	0.56	0.6	0.74	0.51	0.19	-0.17
Other Stockholder Equity	-0.34	0.22	0.32	-0.35	0.23	0.16	0.27	0.32	0.19	0.13	0.28	0.21	-0.24	-0.21	0.02	-0.23	0.23	0.03	0.38		0.23	0.38	0.22	0.24	-0.4	0.16
Total Liab	0.78	1.0	0.8	0.47	0.95	0.98	0.99	0.8	0.85	0.9	0.82	1.0	0.02	0.71	0.83	0.81	1.0	0.52	0.56	0.23		0.57	0.77	0.92	0.75	-0.51
Property Plant And Equipment Gross	0.29	0.56	0.79	0.38	0.66	0.54	0.53	0.79	0.77	0.62	0.52	0.53	-0.12	0.45	0.6	0.42	0.52	0.31	0.6	0.38	0.57		0.72	0.54	0.35	-0.27
Total Current Assets	0.56	0.77	0.72	0.42	0.89	0.74	0.71	0.72	0.73	0.77	0.83	0.72	-0.33	0.78	0.81	0.58	0.73	0.33	0.74	0.22	0.77	0.72		0.84	0.58	-0.4
Short Term Debt	0.69	0.92	0.76	0.39	0.97	0.89	0.9	0.75	0.78	0.88	0.86	0.9	-0.09	0.72	0.83	0.7	0.9	0.41	0.51	0.24	0.92	0.54	0.84		0.67	-0.42
Common Stock	0.99	0.77	0.5	0.58	0.69	0.82	0.72	0.49	0.63	0.71	0.5	0.77	0.27	0.81	0.84	0.97	0.76	0.61	0.19	-0.4	0.75	0.35	0.58	0.67		-0.54
Current Deferred Revenue	-0.52	-0.52	-0.41	-0.67	-0.48	-0.54	-0.5	-0.4	-0.52	-0.54	-0.3	-0.51	-0.46	-0.48	-0.42	-0.51	-0.5	-0.28	-0.17	0.16	-0.51	-0.27	-0.4	-0.42	-0.54

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American Electric Account Relationship Matchups

American Electric fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Common Stock Shares Outstanding	495.3M	497.2M	501.8M	513.5M	520.2M	386.0M
Total Assets	75.9B	80.8B	87.7B	93.5B	96.7B	54.5B
Short Long Term Debt Total	30.5B	34.4B	36.7B	40.4B	43.6B	45.8B
Other Current Liab	3.2B	1.9B	3.6B	2.1B	1.9B	2.3B
Total Current Liabilities	10.3B	9.9B	12.4B	14.6B	11.6B	8.6B
Total Stockholder Equity	19.6B	20.6B	22.4B	23.9B	25.2B	14.0B
Property Plant And Equipment Net	61.1B	64.8B	66.6B	71.9B	77.3B	39.4B
Net Debt	30.3B	34.0B	36.3B	39.9B	43.3B	45.4B
Retained Earnings	9.9B	10.7B	11.7B	12.3B	12.8B	13.4B
Accounts Payable	2.1B	1.7B	2.1B	2.7B	2.0B	1.5B
Cash	246.8M	392.7M	403.4M	509.4M	330.1M	289.6M
Non Current Assets Total	71.8B	76.4B	79.9B	84.1B	90.6B	48.9B
Non Currrent Assets Other	6.8B	6.6B	605.1M	(210.2M)	9.0B	5.8B
Cash And Short Term Investments	449.5M	593.5M	623.8M	696.9M	544.4M	564.2M
Net Receivables	1.7B	1.8B	1.9B	2.6B	2.4B	1.8B
Common Stock Total Equity	3.3B	3.4B	3.4B	3.4B	3.9B	2.9B
Liabilities And Stockholders Equity	75.9B	80.8B	87.7B	93.5B	96.7B	54.5B
Non Current Liabilities Total	45.7B	50.1B	52.6B	54.8B	59.8B	30.3B
Inventory	1.2B	1.3B	989.2M	1.3B	1.9B	1.2B
Other Current Assets	92.9M	638.4M	4.3B	2.1B	1.3B	1.3B
Other Stockholder Equity	6.5B	6.6B	7.2B	8.1B	9.1B	6.7B
Total Liab	56.0B	60.0B	65.0B	69.3B	71.4B	40.4B
Property Plant And Equipment Gross	61.1B	5.3B	86.8B	93.8B	101.9B	107.0B
Total Current Assets	4.1B	4.4B	7.8B	9.4B	6.1B	5.6B
Accumulated Other Comprehensive Income	(147.7M)	(85.1M)	184.8M	83.7M	(55.5M)	(58.3M)
Short Term Debt	4.7B	4.9B	4.9B	6.8B	5.4B	3.3B
Common Stock	3.3B	3.4B	3.4B	3.4B	3.4B	2.9B
Current Deferred Revenue	366.1M	335.6M	321.6M	370M	423.7M	403.0M
Other Liab	19.5B	20.2B	20.6B	20.4B	23.5B	24.7B
Other Assets	9.3B	71.1B	11.8B	10.8B	12.4B	12.4B
Long Term Debt	25.1B	29.0B	31.3B	33.6B	37.7B	20.0B
Property Plant Equipment	60.1B	63.9B	66.0B	71.3B	82.0B	43.8B
Short Term Investments	202.7M	200.8M	220.4M	187.5M	214.3M	224.8M
Noncontrolling Interest In Consolidated Entity	281M	223.6M	247M	229M	263.4M	276.5M
Retained Earnings Total Equity	9.9B	10.7B	11.7B	12.3B	14.2B	8.2B
Deferred Long Term Liab	7.9B	8.5B	8.4B	345.3M	397.1M	377.2M
Net Tangible Assets	19.7B	20.5B	22.4B	23.9B	27.5B	20.2B

Pair Trading with American Electric

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Electric position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Electric will appreciate offsetting losses from the drop in the long position's value.

Moving together with American Stock

0.73	ED	Consolidated Edison	Pair Corr
0.82	ES	Eversource Energy	Pair Corr
0.84	FE	FirstEnergy	Pair Corr

Moving against American Stock

0.56	ETR	Entergy Sell-off Trend	Pair Corr
0.51	EDN	Empresa Distribuidora	Pair Corr
0.44	AEE	Ameren Corp	Pair Corr
0.42	ENIC	Enel Chile SA	Pair Corr
0.39	CNP	CenterPoint Energy	Pair Corr

The ability to find closely correlated positions to American Electric could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Electric when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Electric - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Electric Power to buy it.

The correlation of American Electric is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Electric moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Electric Power moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for American Electric can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

Additional Tools for American Stock Analysis

When running American Electric's price analysis, check to measure American Electric's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Electric is operating at the current time. Most of American Electric's value examination focuses on studying past and present price action to predict the probability of American Electric's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Electric's price. Additionally, you may evaluate how the addition of American Electric to your portfolios can decrease your overall portfolio volatility.

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