AAON Inc (AAON)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.43 | 1.28 | 1.45 | 1.39 | 1.28 |
AAON Inc has consistently shown very low solvency risk based on its debt-related ratios. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been constant at 0.00 from 2020 to 2024, indicating that the company operates with negligible levels of debt relative to its total assets, capital, and equity. This suggests that AAON Inc relies more on equity financing rather than debt to fund its operations and growth.
The financial leverage ratio has shown slight fluctuations over the period, ranging from 1.28 to 1.45. This ratio measures the extent to which a company uses debt to finance its assets, with a higher ratio indicating higher financial leverage. Despite the fluctuations, the ratios remain relatively low, indicating a conservative financial structure and minimal financial risk for the company.
Overall, the solvency ratios reflect AAON Inc's strong financial position and prudent financial management practices, positioning the company well to weather economic uncertainties and pursue future growth opportunities with minimal financial risk.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 79.12 | 49.85 | 48.41 | 525.11 | 7.28 |
The interest coverage ratio indicates the company's ability to meet its interest payment obligations with its operating income. Analysing the interest coverage ratio for AAON Inc from 2020 to 2024 reveals a fluctuating trend.
In 2020, AAON had an interest coverage ratio of 7.28, which suggests the company generated enough operating income to cover its interest expenses nearly seven times. This indicates a moderate financial health with some room for improvement.
However, in 2021, the interest coverage ratio significantly increased to 525.11, indicating a substantial improvement in the company's ability to cover its interest payments. This drastic increase could be due to increased operating income or a decrease in interest expenses.
While the ratio decreased in 2022 to 48.41, it remained above the industry average, indicating that AAON still had a sufficient operating income to cover its interest obligations. The subsequent years also showed a healthy interest coverage ratio, fluctuating between 49.85 and 79.12, indicating the company's ability to consistently meet its interest payment obligations.
Overall, AAON Inc's interest coverage ratios show a generally positive trend, indicating the company's ability to manage its debt obligations effectively over the years.