AAON Inc (AAON)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.29% | 26.64% | 25.61% | 29.71% | 25.46% |
| Operating profit margin | 19.55% | 14.21% | 12.87% | 19.41% | 14.29% |
| Pretax margin | 19.18% | 13.96% | 12.86% | 19.44% | 14.29% |
| Net profit margin | 15.26% | 11.25% | 10.92% | 15.06% | 11.45% |
AAON Inc.'s profitability ratios have shown a generally positive trend over the past five years. The gross profit margin has improved steadily from 25.45% in 2019 to 34.15% in 2023, indicating the company's ability to efficiently manage its production costs. This improvement suggests that the company has been able to increase its earnings on sales after accounting for the cost of goods sold.
Similarly, the operating profit margin has also shown a positive trend, increasing from 14.35% in 2019 to 19.47% in 2023. This metric reflects the company's efficiency in managing its operating expenses relative to its revenue, indicating improved operational efficiency over the years.
The pretax margin, which represents the company's earnings before taxes as a percentage of total revenue, has fluctuated but generally trended upwards from 14.28% in 2019 to 19.10% in 2023. This suggests that the company has been able to generate more profit from its operations before considering the impact of taxes.
Lastly, the net profit margin, a key indicator of overall profitability, has also shown improvement over the years, increasing from 11.44% in 2019 to 15.20% in 2023. This metric reflects the company's ability to generate profit after accounting for all expenses, including taxes and interest, and indicates that AAON Inc. has been able to increase its bottom line profit over time.
Overall, AAON Inc.'s profitability ratios demonstrate a positive trend, reflecting improved operational efficiency and profitability over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 24.16% | 15.57% | 10.65% | 22.68% | 18.04% |
| Return on assets (ROA) | 18.87% | 12.33% | 9.04% | 17.60% | 14.46% |
| Return on total capital | 30.94% | 20.07% | 13.68% | 28.51% | 22.60% |
| Return on equity (ROE) | 24.16% | 17.90% | 12.60% | 22.52% | 18.51% |
AAON Inc. has demonstrated strong profitability performance over the past five years based on the provided ratios.
1. Operating return on assets (Operating ROA) has improved steadily from 2019 to 2023, indicating the company's ability to generate operating income from its assets. The significant increase from 2022 to 2023 suggests improved operational efficiency and asset utilization.
2. Return on assets (ROA) has also shown a positive trend, increasing consistently year over year. This metric reflects the company's overall profitability in relation to its total assets, with the latest figure for 2023 showing a healthy ROA of 18.87%.
3. Return on total capital has demonstrated a similar upward trajectory, indicating the company's strong ability to generate returns on its total invested capital. The notable increase in 2023 suggests efficient capital allocation and positive performance.
4. Return on equity (ROE) has also improved consistently over the years, reflecting the return generated for shareholders' equity. The latest ROE for 2023 stands at an impressive 24.16%, indicating that AAON Inc. is effectively utilizing equity to generate profits.
Overall, the profitability ratios for AAON Inc. show a positive trend and reflect the company's ability to effectively manage its assets, capital, and equity to generate profits for its stakeholders.