AAON Inc (AAON)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 14 | 287 | 5,451 | 2,859 | 79,025 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 174,905 | 126,749 | 145,567 | 86,768 | 59,033 |
| Cash ratio | 0.00 | 0.00 | 0.04 | 0.03 | 1.34 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($14K
+ $—K)
÷ $174,905K
= 0.00
The cash ratio for AAON Inc has exhibited a declining trend over the years based on the provided data. As of December 31, 2020, the cash ratio stood at a comfortable level of 1.34, indicating that the company had $1.34 in cash and cash equivalents for every $1 of current liabilities.
However, there has been a significant decrease in the cash ratio since then. By the end of December 31, 2021, the ratio had dropped sharply to 0.03, suggesting a substantial reduction in the company's ability to cover its short-term obligations with its available cash reserves.
Although there was a slight uptick in the cash ratio by the end of December 31, 2022, reaching 0.04, it remained at a relatively low level. The subsequent years, December 31, 2023 and December 31, 2024, show a further decrease in the cash ratio to 0.00, indicating a cause for concern about the company's liquidity position.
This declining trend in the cash ratio may raise questions about AAON Inc's ability to meet its short-term financial obligations solely with its cash resources. It suggests a potential need for the company to assess and improve its cash management strategies to enhance its liquidity position and ensure financial stability in the future.
Peer comparison
Dec 31, 2024