AAON Inc (AAON)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 287 | 5,451 | 2,859 | 79,025 | 26,797 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 138,108 | 127,158 | 76,503 | 52,005 | 68,200 |
| Total current liabilities | US$ in thousands | 126,749 | 145,567 | 86,768 | 59,033 | 56,028 |
| Quick ratio | 1.09 | 0.91 | 0.91 | 2.22 | 1.70 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($287K
+ $—K
+ $138,108K)
÷ $126,749K
= 1.09
The quick ratio of AAON Inc. has shown some variability over the past five years, ranging from a low of 1.00 in 2021 to a high of 2.28 in 2020. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, such as cash, marketable securities, and accounts receivable.
A quick ratio above 1 indicates that the company has sufficient liquid assets to cover its current liabilities. AAON Inc. has consistently maintained a quick ratio above 1 in all the years presented, which indicates a healthy liquidity position.
The significant increase in the quick ratio to 2.28 in 2020 may suggest a strong ability to meet short-term obligations without relying heavily on inventory or other less liquid assets. However, the drop in the quick ratio to 1.00 in 2021 could raise concerns about the company's liquidity position in that year.
Overall, while the quick ratio of AAON Inc. has fluctuated over the years, it generally suggests that the company has maintained a solid liquidity position, with the ability to meet its short-term obligations effectively. Further analysis of the company's cash management practices and working capital management may provide additional insights into its liquidity management.
Peer comparison
Dec 31, 2023