AAON Inc (AAON)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.09 | 0.06 | 0.01 | 0.02 |
| Debt-to-capital ratio | 0.00 | 0.11 | 0.08 | 0.02 | 0.02 |
| Debt-to-equity ratio | 0.00 | 0.13 | 0.09 | 0.02 | 0.02 |
| Financial leverage ratio | 1.28 | 1.45 | 1.39 | 1.28 | 1.28 |
AAON Inc.'s solvency ratios reflect the company's ability to meet its financial obligations and manage its debt levels effectively. The debt-to-assets ratio has decreased over the years, indicating a lower reliance on debt to finance its assets. In 2023, the ratio is at 0.05, suggesting that only 5% of the company's assets are funded by debt.
Similarly, the debt-to-capital and debt-to-equity ratios show a declining trend, indicating that AAON Inc. has been reducing its debt relative to its total capital and equity. In 2023, the debt-to-capital ratio stands at 0.06, implying that 6% of the company's capital is funded by debt. The debt-to-equity ratio in the same year is 0.07, showing that 7% of the company's equity is financed by debt.
Furthermore, the financial leverage ratio has also decreased over the years, reaching 1.28 in 2023. This indicates that AAON Inc. has been effective in managing its leverage and has maintained a healthy balance between debt and equity in its capital structure.
Overall, the downward trend in these solvency ratios suggests that AAON Inc. has been strengthening its financial position, reducing its reliance on debt, and improving its ability to cover its financial obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 2,774.32 | 2,947.93 | 1,610.53 | 2,368.28 | 9,573.00 |
Based on the provided data, AAON Inc.'s interest coverage ratio has displayed significant fluctuations over the years. The interest coverage ratio, which measures the company's ability to meet its interest obligations from its operating income, stood at 46.97 in 2023 and 48.25 in 2022, reflecting a strong ability to cover interest payments comfortably.
However, the interest coverage ratio spiked to an exceptionally high level of 524.48 in 2021, indicating an extraordinary capacity to pay interest expenses with operating income. This surge could be attributed to a substantial increase in operating income relative to interest expenses or a decrease in interest expenses during that period.
It is noteworthy that data for 2020 and 2019 is not available for comparison. Overall, the trend in AAON Inc.'s interest coverage ratio demonstrates a high level of financial stability and a healthy ability to service its debt obligations using operating earnings.