AAON Inc (AAON)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,163,700 | 891,921 | 538,159 | 524,604 | 469,090 |
| Property, plant and equipment | US$ in thousands | 369,947 | 304,745 | 258,062 | 223,340 | 178,094 |
| Fixed asset turnover | 3.15 | 2.93 | 2.09 | 2.35 | 2.63 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,163,700K ÷ $369,947K
= 3.15
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its investment in fixed assets. Higher fixed asset turnover ratios indicate that the company is using its fixed assets efficiently to generate sales.
Looking at the trend of AAON Inc.'s fixed asset turnover over the past five years, we can see fluctuations. In 2023, the fixed asset turnover ratio increased to 3.16 from 2.92 in 2022, indicating that the company was able to generate more sales from its fixed assets. This suggests improved efficiency in asset utilization.
However, in 2021, the fixed asset turnover ratio was relatively low at 2.07, which may indicate underutilization of fixed assets or potentially lower sales generated from those assets. The ratio then increased in 2022 but decreased again in 2020.
Overall, AAON Inc. has shown some variability in its fixed asset turnover ratio over the years, indicating fluctuations in how effectively the company is utilizing its fixed assets to generate sales. Further analysis would be needed to understand the reasons behind these fluctuations and to assess the company's overall asset management efficiency.
Peer comparison
Dec 31, 2023