AAON Inc (AAON)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 3.23 | 2.40 | 2.51 | 3.73 | 3.35 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $408,954K ÷ $126,749K
= 3.23
The current ratio of AAON Inc. has shown some fluctuation over the past five years. In 2023, the current ratio stands at 3.23, indicating that the company has $3.23 in current assets for every $1 in current liabilities. This represents a significant improvement compared to the previous year, where the ratio was 2.40.
The increase in the current ratio from 2022 to 2023 suggests that AAON Inc. may have strengthened its liquidity position by either increasing current assets, decreasing current liabilities, or a combination of both. A current ratio above 1 means that the company can cover its short-term obligations, and a higher ratio is generally seen as a positive indicator of financial health.
However, it's important to note that in 2021 and 2022, the current ratio was slightly lower at 2.51 and 2.40, respectively. This could indicate a potential liquidity concern in those years, where the company may have had fewer liquid assets relative to its short-term obligations.
Overall, while AAON Inc.'s current ratio has shown variability in recent years, the current ratio of 3.23 in 2023 reflects a strong liquidity position that may provide a cushion against short-term financial difficulties.
Peer comparison
Dec 31, 2023