AAON Inc (AAON)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.11 | 0.08 | 0.02 | 0.02 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $735,224K)
= 0.00
The debt-to-capital ratio measures the proportion of a company's total capitalization that is financed by debt. In the case of AAON Inc., the trend in the debt-to-capital ratio over the past five years shows some fluctuations.
In 2023, the debt-to-capital ratio stands at 0.06, indicating that only 6% of AAON's total capital is comprised of debt. This represents a decrease from the previous year when the ratio was 0.11, suggesting that the company has reduced its reliance on debt as a source of funding.
Compared to 2021 when the ratio was 0.08, the current level of debt relative to capital is lower, indicating a more conservative capital structure. It is worth noting that in both 2020 and 2019, the company had no debt on its balance sheet, resulting in debt-to-capital ratios of 0.00 for those years.
Overall, the decreasing trend in the debt-to-capital ratio from 2022 to 2023 signals a positive development towards a more balanced and less leveraged financial position for AAON Inc. This could enhance the company's financial stability and flexibility in managing its capital structure.
Peer comparison
Dec 31, 2023