AAON Inc (AAON)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 78,420 | 78,536 | 83,664 | 71,004 | 76,291 | 106,249 | 65,000 | 40,000 | 6,394 | 6,383 | 6,373 | 6,363 | 6,351 | 6,340 | 6,330 | 6,320 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 735,224 | 682,484 | 660,111 | 609,414 | 560,714 | 523,858 | 490,506 | 480,156 | 466,170 | 400,279 | 383,726 | 373,038 | 350,865 | 344,892 | 322,695 | 306,323 | 290,140 | 279,567 | 264,569 | 259,370 |
| Debt-to-capital ratio | 0.00 | 0.10 | 0.11 | 0.12 | 0.11 | 0.13 | 0.18 | 0.12 | 0.08 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.00 | 0.00 | 0.00 |
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 of AAON Inc. has varied over the last eight quarters, ranging from 0.06 to 0.18. This ratio indicates the proportion of the company's capital structure that is financed by debt. AAON Inc. has maintained relatively low levels of debt compared to its total capital, with the highest ratio recorded in Q2 2022 at 0.18. However, the ratio decreased gradually in subsequent quarters, reaching its lowest point of 0.06 in Q4 2023.
The decreasing trend in the debt-to-capital ratio suggests that AAON Inc. has been reducing its reliance on debt financing over the given period. This can be seen as a positive sign as lower debt levels generally indicate lower financial risk and potentially better financial health. However, it is important to note that a very low debt-to-capital ratio could also indicate underutilization of debt, which could limit the company's ability to take advantage of growth opportunities or leverage potential tax benefits associated with debt.
Overall, the analysis of AAON Inc.'s debt-to-capital ratio highlights the company's cautious approach to debt management and its focus on maintaining a sound balance between debt and equity financing within its capital structure.
Peer comparison
Dec 31, 2023