AAON Inc (AAON)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 168,559 | 177,623 | 100,376 | 58,758 | 79,009 |
| Total stockholders’ equity | US$ in thousands | 824,582 | 735,224 | 560,714 | 466,170 | 350,865 |
| ROE | 20.44% | 24.16% | 17.90% | 12.60% | 22.52% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $168,559K ÷ $824,582K
= 20.44%
Based on the data provided for AAON Inc's return on equity (ROE) from 2020 to 2024, we observe fluctuations in the company's performance in generating returns for its shareholders.
- In 2020, the ROE stood at 22.52%, indicating a strong performance in utilizing shareholders' equity to generate profits.
- However, in 2021, there was a decline in ROE to 12.60%, which could be a cause for concern as it signifies a decrease in the company's efficiency in generating profits from shareholders' investments.
- The following year, in 2022, the ROE improved to 17.90%, showing a recovery in the company's ability to deliver returns to its shareholders.
- Subsequently, in 2023, the ROE further increased to 24.16%, reaching a level that suggests a commendable performance in utilizing equity to generate profits.
- Lastly, in 2024, the ROE dropped slightly to 20.44%, but still remained at a level that indicates efficiency in generating returns for shareholders.
Overall, AAON Inc's ROE has shown variability over the years, with some years reflecting strong performance and others indicating a need for improvement. It is important for the company to consistently monitor and enhance its ROE to ensure sustainable and satisfactory returns for its shareholders.
Peer comparison
Dec 31, 2024