AAON Inc (AAON)
Working capital 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 |
| Total current assets | US$ in thousands | 408,954 | 349,116 | 218,080 | 220,251 | 187,549 |
| Total current liabilities | US$ in thousands | 126,749 | 145,567 | 86,768 | 59,033 | 56,028 |
| Working capital turnover | 4.12 | 4.38 | 4.10 | 3.25 | 3.57 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,163,700K ÷ ($408,954K – $126,749K)
= 4.12
The working capital turnover ratio for AAON Inc. has shown variability over the past five years. The ratio indicates the company's efficiency in generating sales revenue relative to its working capital levels. A higher working capital turnover ratio typically suggests that the company is effectively utilizing its working capital to support sales activity.
In 2023, AAON Inc. had a working capital turnover ratio of 4.14, a slight decrease from the previous year's ratio of 4.37. Despite the decrease, the current ratio of 4.14 still indicates that the company efficiently converted its working capital into sales revenue during the year.
Comparing the most recent ratio to historical data, AAON Inc. experienced fluctuations in its working capital turnover ratio. The ratio was relatively stable between 2021 and 2022 before experiencing a notable increase from 2022 to 2023. This increase may suggest improved efficiency in working capital management and sales generation during the most recent period.
Overall, the trend in AAON Inc.'s working capital turnover ratio reflects the company's ability to efficiently use its working capital to drive sales growth. Further analysis of the company's working capital components and operational efficiency could provide additional insights into its financial performance and management effectiveness.
Peer comparison
Dec 31, 2023