AAON Inc (AAON)

Short-term

Turnover ratios

Inventory turnover is a measure of how efficiently a company manages its inventory. AAON Inc's inventory turnover has fluctuated over the years, ranging from 3.05 to 4.29. A decreasing inventory turnover can indicate potential issues with managing inventory levels or demand for the company's products.

Receivables turnover measures how quickly a company collects its accounts receivable. In this case, the data indicates that receivables turnover information is not available for the years provided. This lack of information makes it difficult to assess the efficiency of AAON Inc in collecting payments from its customers.

Payables turnover is a ratio that shows how well a company manages its accounts payable. Similar to receivables turnover, there is no information provided for AAON Inc's payables turnover. Without this data, it is challenging to evaluate how effectively the company is managing its payables.

Working capital turnover measures how efficiently a company utilizes its working capital to generate sales. AAON Inc's working capital turnover has ranged from 3.19 to 4.37, showing varying levels of efficiency in utilizing its working capital to generate revenue over the years. A higher working capital turnover indicates better efficiency in generating sales revenue with the available working capital.

Overall, while the inventory turnover and working capital turnover provide some insights into AAON Inc's operational efficiency, the lack of data for receivables turnover and payables turnover limits a comprehensive analysis of the company's overall activity ratios.

---

Average number of days

Based on the provided data for AAON Inc, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- In December 31, 2020, the company had 83.66 days of inventory on hand, which increased to 119.86 days by December 31, 2021.
- Subsequently, by December 31, 2022, the DOH decreased to 111.50 days, further declining to 101.29 days by December 31, 2023.
- Finally, by December 31, 2024, the days of inventory on hand improved to 85.14 days.

2. Days of Sales Outstanding (DSO):
- The data for Days of Sales Outstanding is not provided for any of the years, indicating that the company's accounts receivable turnover and collection period were not explicitly given in the dataset.

3. Number of Days of Payables:
- Similarly, the information on the number of days of payables is not available for any of the years, suggesting that the company's accounts payable turnover and payment period are not included in the dataset.

Overall, based on the information provided, we can see fluctuations in the Days of Inventory on Hand over the years, indicating changes in the company's inventory management efficiency. However, without data on Days of Sales Outstanding and Number of Days of Payables, a comprehensive analysis of AAON Inc's complete activity ratios cannot be made. Further information on these ratios would provide a more holistic view of the company's operational performance.

---

Long-term

The fixed asset turnover ratio for AAON Inc has shown some variability over the years. In 2020, the ratio was 2.30, indicating that the company generated $2.30 in sales for every dollar of fixed assets. This ratio decreased in 2021 to 1.94, suggesting a decrease in efficiency in utilizing fixed assets to generate revenue. However, there was a significant improvement in 2022 with the ratio increasing to 2.85, indicating better utilization of fixed assets to generate sales.

The total asset turnover ratio, which includes both fixed and current assets, also fluctuated over the years. In 2020, the ratio was 1.15, indicating that the company generated $1.15 in sales for every dollar of total assets. However, this ratio decreased in 2021 to 0.82, suggesting a decrease in overall asset efficiency in generating revenue. There was an improvement in 2022 with the ratio increasing to 1.09, and further increase in 2023 to 1.24, indicating that the company was able to generate more sales per dollar of total assets.

The analysis of these long-term activity ratios suggests that while there have been fluctuations in efficiency in utilizing fixed and total assets to generate sales, there have been periods of improvement as well. It is important for AAON Inc to monitor these ratios continuously to ensure optimal utilization of assets to drive revenue growth and profitability.