AAON Inc (AAON)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.23 | 3.03 | 2.76 | 2.79 | 2.40 | 2.36 | 2.40 | 2.48 | 2.51 | 3.65 | 3.30 | 3.68 | 3.73 | 3.67 | 2.87 | 3.07 | 3.35 | 3.21 | 2.90 | 3.40 |
| Quick ratio | 1.09 | 2.65 | 1.05 | 1.19 | 0.91 | 1.03 | 1.10 | 1.06 | 0.91 | 2.19 | 2.14 | 2.35 | 2.22 | 2.22 | 1.60 | 1.65 | 1.70 | 1.66 | 1.55 | 1.64 |
| Cash ratio | 0.00 | 1.51 | 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 | 0.48 | 0.53 | 0.30 | 0.17 |
AAON Inc.'s liquidity ratios over the past eight quarters show a stable financial position with consistent improvements in liquidity. The current ratio, which measures the company's ability to cover its short-term obligations with current assets, has increased steadily from 2.40 in Q4 2022 to 3.23 in Q4 2023. This indicates that AAON Inc. has more than enough current assets to meet its current liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also reflects a positive trend. It has risen from 1.03 in Q4 2022 to 1.47 in Q4 2023, indicating that the company has enough liquid assets to cover its immediate liabilities without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, has fluctuated over the quarters but generally shows an upward trend. This suggests that AAON Inc. has improved its ability to meet its short-term obligations with cash on hand, reaching 0.38 in Q4 2023.
Overall, AAON Inc.'s liquidity ratios demonstrate a healthy financial position, with increasing levels of liquidity and strong ability to cover its short-term obligations.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 113.19 | 124.62 | 129.93 | 133.79 | 123.83 | 131.26 | 148.47 | 144.70 | 129.83 | 107.77 | 96.10 | 102.25 | 95.79 | 98.33 | 101.04 | 102.79 | 123.10 | 129.85 | 170.78 | 239.85 |
The cash conversion cycle of AAON Inc. has shown some fluctuations over the past eight quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales to customers.
In Q1 2023, the cash conversion cycle was at its highest level of 148.68 days, indicating that the company took longer to convert its resources into cash during that quarter. This was a decrease from the previous quarter, Q4 2022, when the cycle was slightly lower at 138.21 days.
The trend continued to improve in Q2 2023 and Q3 2023, with the cash conversion cycle decreasing to 146.03 days and 142.10 days, respectively. However, in Q4 2023, there was a slight increase to 131.39 days, but it still remained lower than the levels seen in the first half of the year.
Overall, while there have been fluctuations quarter-over-quarter, the general trend indicates that AAON Inc. has been working towards optimizing its cash conversion process. By effectively managing its inventory, accounts receivable, and accounts payable, the company has been able to reduce the time it takes to convert its investments into cash. This is a positive sign for the company's operational efficiency and liquidity management.