Financial Analysis of Ameren (st. Louis, Mo)

FINANCIAL ANALYIS OF AMEREN (ST.LOUIS, MO)

A patient is rushed from his home in an ambulance. An IV drip has been started. Monitors are checking his vitals and his next of kin have been notified. This is not a situation any of us would like to find ourselves involved in; nevertheless, it is imperative that we monitor our diet, maintain our weight, blood pressure and cholesterol. Also, various blood tests can be performed in order to ensure a long healthy life.

The physical health of a person can be analogous to the fiscal health of a publically traded corporation. There are two sets of basic measurements used to gauge the strength of a corporation and therefore the likelihood of current and potential stockholders investing in the business. One: is comprised of the income statement, the balance sheet and a cash flow statement. Two: are the financial ratios that include current ratio, Account receivable (A/R) turnover, debt ratio and gross profit margin.

In the examining room now will be the utility company Ameren Corporation of Saint Louis, Missouri during the first quarter of 2011. The flow, balances, incomes and ratios will be checked to see if the condition of the patient warrants investment or possible removal of investment.

(2)

A collection of income statements should be checked for significant rising and falling among periods. These observations of income statements aid in the evaluation of the company and the decision of the investor of whether to place buy into the company or sell some of the investments.

Expenses for Ameren-Saint Louis, Missouri for the first quarter of 2011 were 1,677 million. For 2010 the expenses