AAON Inc (AAON)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,200,640 | 1,168,520 | 888,788 | 534,517 | 514,551 |
| Property, plant and equipment | US$ in thousands | — | — | 311,868 | 275,036 | 223,340 |
| Fixed asset turnover | — | — | 2.85 | 1.94 | 2.30 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,200,640K ÷ $—K
= —
Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. In the case of AAON Inc, the trend in fixed asset turnover over the past few years shows some fluctuation.
In 2020, the fixed asset turnover was 2.30, indicating that for every dollar invested in fixed assets, the company generated $2.30 in revenue. However, by the end of 2021, this ratio declined to 1.94, suggesting a decrease in the efficiency of utilizing fixed assets to generate sales.
The ratio improved significantly in 2022, with a fixed asset turnover of 2.85, indicating that AAON Inc was able to generate more revenue relative to its investment in fixed assets during that period.
Unfortunately, the data is not available for 2023 and 2024. It is important to note that a high fixed asset turnover ratio generally indicates efficient use of fixed assets to generate sales, while a declining ratio may raise concerns about underutilization or inefficiency in managing fixed assets.
In conclusion, the fluctuating trend in AAON Inc's fixed asset turnover ratio suggests varying efficiency levels in utilizing fixed assets to generate revenue over the analyzed period. Further analysis and comparison with industry peers may provide more insights into the company's asset management efficiency.
Peer comparison
Dec 31, 2024