AAON Inc (AAON)
Quick ratio
| 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 | US$ in thousands | 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 | 26,797 | 28,373 | 13,683 | 7,143 |
| Short-term investments | US$ in thousands | — | 211,788 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 4,000 | — |
| Receivables | US$ in thousands | 138,108 | 160,108 | 156,810 | 160,954 | 127,158 | 136,014 | 131,953 | 115,828 | 76,503 | 60,787 | 56,682 | 59,964 | 52,005 | 66,138 | 61,576 | 69,921 | 68,200 | 59,981 | 72,207 | 63,471 |
| Total current liabilities | US$ in thousands | 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 | 56,028 | 53,103 | 58,102 | 43,082 |
| 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 |
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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of 1 or higher is typically considered healthy, indicating that a company has enough liquid assets to cover its current liabilities.
Analyzing the quick ratio of AAON Inc. over the past eight quarters reveals fluctuations in the company's short-term liquidity position. In Q4 2023, the quick ratio increased to 1.47 compared to the previous quarter, indicating an improvement in the company's ability to meet its short-term obligations using its liquid assets.
The quick ratio remained relatively stable in the range of 1.21 to 1.34 throughout the first three quarters of 2023, suggesting that AAON Inc. maintained a strong liquidity position during this period. Comparing to the same quarters of the previous year, the quick ratio has shown overall improvement, with Q4 2022 standing at 1.03 and steadily increasing over the quarters.
Overall, the trend in AAON Inc.'s quick ratio demonstrates a consistent ability to cover its short-term liabilities with liquid assets, providing a favorable indication of the company's financial health and liquidity management.
Peer comparison
Dec 31, 2023