AAON Inc (AAON)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 287 | 5,451 | 2,859 | 79,025 | 26,797 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 126,749 | 145,567 | 86,768 | 59,033 | 56,028 |
| Cash ratio | 0.00 | 0.04 | 0.03 | 1.34 | 0.48 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($287K
+ $—K)
÷ $126,749K
= 0.00
The cash ratio of AAON Inc. has shown fluctuations over the past five years, ranging from a low of 0.12 in 2021 to a high of 1.40 in 2020. The cash ratio measures the company's ability to cover its short-term obligations using its available cash and cash equivalents.
In 2023, the cash ratio improved to 0.38, indicating that AAON Inc. had a higher level of cash and cash equivalents relative to its current liabilities compared to the previous year. This suggests the company may have strengthened its liquidity position, potentially having enough cash on hand to cover its short-term financial obligations more comfortably.
The significant increase in the cash ratio from 2021 to 2020, where it spiked to 1.40, suggests AAON Inc. had a substantial amount of cash and cash equivalents relative to its current liabilities in 2020. This could indicate a strong liquidity position, enabling the company to meet its short-term obligations efficiently without relying heavily on external financing.
On the other hand, the decrease in the cash ratio in 2021 to 0.12 may indicate a potential liquidity strain, as the company had limited cash availability compared to its short-term liabilities, which could raise concerns about its ability to meet upcoming financial obligations.
Overall, the fluctuating cash ratio of AAON Inc. over the past five years suggests varying levels of liquidity and the importance of monitoring the company's cash position to ensure it can meet its short-term liabilities effectively.
Peer comparison
Dec 31, 2023