AAON Inc (AAON)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 209,118 | 227,494 | 126,761 | 69,253 | 101,836 |
| Total assets | US$ in thousands | 1,175,230 | 941,436 | 813,903 | 650,180 | 449,008 |
| Operating ROA | 17.79% | 24.16% | 15.57% | 10.65% | 22.68% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $209,118K ÷ $1,175,230K
= 17.79%
Analysis of AAON Inc Operating Return on Assets (Operating ROA):
Operating ROA is a crucial metric that measures a company's profitability by evaluating how efficiently it generates profits from its assets dedicated to operations. Let's analyze AAON Inc's operating ROA over the past five years:
1. As of December 31, 2020, AAON Inc reported an impressive operating ROA of 22.68%, indicating that the company generated $0.2268 in operating income for every dollar of assets employed in operations in that year.
2. However, by December 31, 2021, the operating ROA decreased to 10.65%, suggesting a decline in profitability and operational efficiency. This could be due to various factors such as increased operating expenses or lower revenue generation.
3. In 2022, AAON Inc's operating ROA improved to 15.57%, indicating a recovery in profitability and efficiency compared to the previous year.
4. The trend continued positively in 2023, with the operating ROA reaching 24.16%, reflecting a significant improvement in profitability and operational performance.
5. By the end of December 31, 2024, the operating ROA stood at 17.79%, showing a slight decrease from the previous year but remaining at a relatively healthy level.
Overall, the fluctuation in AAON Inc's operating ROA over the years suggests varying levels of efficiency in utilizing its assets to generate operating income. Investors and stakeholders should closely monitor this metric to assess the company's operational performance and profitability.
Peer comparison
Dec 31, 2024