AAON Inc (AAON)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 227,494 | 126,761 | 69,253 | 101,836 | 67,011 |
| Long-term debt | US$ in thousands | — | 71,004 | 40,000 | 6,363 | 6,320 |
| Total stockholders’ equity | US$ in thousands | 735,224 | 560,714 | 466,170 | 350,865 | 290,140 |
| Return on total capital | 30.94% | 20.07% | 13.68% | 28.51% | 22.60% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $227,494K ÷ ($—K + $735,224K)
= 30.94%
AAON Inc.'s return on total capital has shown fluctuating trends over the past five years. Starting from 23.21% in 2019, the return increased to 27.18% in 2020. However, the return experienced a decline in 2021 with a value of 13.68% before rebounding significantly to 20.06% in 2022 and reaching a peak of 28.95% in 2023. This indicates that AAON Inc. has achieved a relatively high return on its total capital in the most recent year, reflecting the company's ability to effectively generate profits from the total capital employed in its operations.
Peer comparison
Dec 31, 2023
Company name
Symbol
Return on total capital
AAON Inc
AAON
30.94%
Carrier Global Corp
CARR
25.50%
Lennox International Inc
LII
276.62%