AAON Inc (AAON)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 14 | 15 | 13 | 8,385 | 287 | 212 | 5,237 | 2,515 | 5,451 | 10,738 | 17,647 | 5,633 | 2,859 | 101,813 | 111,427 | 97,047 | 79,025 | 70,603 | 61,284 | 35,677 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 174,905 | 139,833 | 141,319 | 125,163 | 126,749 | 140,479 | 153,673 | 137,871 | 145,567 | 142,184 | 136,169 | 114,226 | 86,768 | 74,206 | 78,511 | 66,679 | 59,033 | 61,506 | 76,620 | 64,185 |
| Cash ratio | 0.00 | 0.00 | 0.00 | 0.07 | 0.00 | 0.00 | 0.03 | 0.02 | 0.04 | 0.08 | 0.13 | 0.05 | 0.03 | 1.37 | 1.42 | 1.46 | 1.34 | 1.15 | 0.80 | 0.56 |
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 of AAON Inc has fluctuated over the period from March 31, 2020, to December 31, 2024. The cash ratio represents the proportion of a company's current assets held in cash and cash equivalents relative to its current liabilities.
Initially, the cash ratio increased steadily from 0.56 on March 31, 2020, to a peak of 1.46 on March 31, 2021, indicating the company had a strong ability to cover its short-term liabilities with its cash reserves. However, the cash ratio started to decline from that point onwards.
By December 31, 2021, the cash ratio dropped significantly to 0.03, indicating a substantial decrease in the company's cash reserves relative to its current liabilities. This low cash ratio might raise concerns about the company's ability to meet its short-term obligations using its available cash and cash equivalents.
The cash ratio remained relatively low throughout the following periods, hovering around 0.00 from September 30, 2023, to December 31, 2024. A cash ratio of 0.00 suggests that the company's cash and cash equivalents are not sufficient to cover its current liabilities, potentially indicating liquidity challenges.
Overall, the declining trend in AAON Inc's cash ratio reflects a decrease in its ability to meet short-term obligations with cash on hand. Investors and stakeholders may need to closely monitor the company's liquidity position and cash management strategies to ensure financial stability and sustainability in the future.
Peer comparison
Dec 31, 2024