AAON Inc (AAON)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 229,849 | 241,434 | 127,160 | 69,314 | 95,358 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 824,582 | 735,224 | 560,714 | 466,170 | 350,865 |
| Return on total capital | 27.87% | 32.84% | 22.68% | 14.87% | 27.18% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $229,849K ÷ ($—K + $824,582K)
= 27.87%
AAON Inc's return on total capital has shown variability over the last five years. In December 2020, the return on total capital stood at 27.18%, indicating efficient utilization of both debt and equity capital to generate profits. However, by December 2021, the return on total capital decreased to 14.87%, suggesting a potential decrease in profitability or capital efficiency.
There was a notable improvement in December 2022, with the return on total capital increasing to 22.68%. This could indicate a better use of capital or improved profitability compared to the previous year. By December 2023, the return on total capital surged to 32.84%, reaching a peak over the period under consideration. This spike could be attributed to enhanced operational performance or effective capital allocation strategies.
In December 2024, the return on total capital slightly decreased to 27.87%, remaining relatively high compared to the initial years. Overall, the fluctuating trend in AAON Inc's return on total capital suggests varying levels of capital efficiency and profitability during the period analyzed. Further evaluation of the company's financial performance and operational strategies would be necessary to gain a deeper understanding of the factors influencing these fluctuations.
Peer comparison
Dec 31, 2024