AAON Inc (AAON)
Debt-to-equity 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-equity ratio | 0.00 | 0.13 | 0.09 | 0.02 | 0.02 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $735,224K
= 0.00
The debt-to-equity ratio of AAON Inc. has been fluctuating over the past five years, indicating varying levels of financial leverage. In 2023, the ratio decreased to 0.07 from 0.13 in 2022, suggesting a reduction in the company's reliance on debt financing compared to the previous year. In 2021, the ratio stood at 0.09, slightly higher than in 2023 but lower than in 2022.
Notably, in 2020 and 2019, the company had a debt-to-equity ratio of 0.00, implying that AAON Inc. had no debt in its capital structure during those years. This suggests a conservative financial strategy focused on minimizing debt levels to enhance financial stability and reduce interest expense.
Overall, the trend reflects a relatively low level of debt utilization by AAON Inc., which may indicate a conservative approach to capital structure management aimed at mitigating financial risks and maintaining financial flexibility.
Peer comparison
Dec 31, 2023