AAON Inc (AAON)
Receivables 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 |
| Receivables | US$ in thousands | 138,108 | 127,158 | 76,503 | 52,005 | 68,200 |
| Receivables turnover | 8.43 | 7.01 | 7.03 | 10.09 | 6.88 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,163,700K ÷ $138,108K
= 8.43
The receivables turnover ratio for AAON Inc. has fluctuated over the past five years. In 2023, the receivables turnover ratio improved to 8.46, indicating that the company collected its accounts receivables approximately 8.46 times during the year. This was a positive sign as it suggests that the company was able to convert its accounts receivables into cash more efficiently compared to the previous year.
In 2022 and 2021, the receivables turnover ratio remained steady at 6.99, which indicates that on average, the company collected its receivables about 6.99 times each year. This consistency could imply that AAON Inc. had established a stable and reliable accounts receivables collection process during those years.
The ratio significantly increased in 2020 to 9.89, signaling that the company was able to collect its accounts receivables more frequently during that year, which might have been due to improved credit policies or more effective collection efforts.
However, in 2019, the receivables turnover ratio decreased to 6.88, which means that the company collected its receivables less frequently compared to the other years analyzed. This could indicate potential issues with collecting payments from customers or a need for more efficient accounts receivables management.
Overall, the trend in AAON Inc.'s receivables turnover ratio suggests fluctuations in the efficiency of collecting accounts receivables over the past five years, with the most recent year showing a significant improvement in this aspect.
Peer comparison
Dec 31, 2023