AAON Inc (AAON)
Working capital 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 |
| Total current assets | US$ in thousands | 488,212 | 408,954 | 349,116 | 218,080 | 220,251 |
| Total current liabilities | US$ in thousands | 174,905 | 126,749 | 145,567 | 86,768 | 59,033 |
| Working capital turnover | 3.83 | 4.14 | 4.37 | 4.07 | 3.19 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,200,640K ÷ ($488,212K – $174,905K)
= 3.83
The working capital turnover for AAON Inc has shown a positive trend over the five-year period from December 31, 2020, to December 31, 2024. The ratio has improved from 3.19 in 2020 to 4.07 in 2021, indicating that the company generated $4.07 in revenue for every dollar of working capital invested.
Further, the ratio continued to increase in 2022 to 4.37, demonstrating that AAON Inc became more efficient in utilizing its working capital to generate revenue. Despite a slight dip in 2023 to 4.14, the company maintained a strong working capital turnover ratio above 4.
However, in 2024, the working capital turnover ratio decreased to 3.83, which may suggest a moderate decline in the company's efficiency in turning working capital into sales revenue compared to the previous year. It would be important for AAON Inc to analyze the factors contributing to this decrease and take necessary measures to ensure optimal utilization of working capital in the upcoming periods.
Peer comparison
Dec 31, 2024