AAON Inc (AAON)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 941,436 | 813,903 | 650,180 | 449,008 | 371,424 |
| Total stockholders’ equity | US$ in thousands | 735,224 | 560,714 | 466,170 | 350,865 | 290,140 |
| Financial leverage ratio | 1.28 | 1.45 | 1.39 | 1.28 | 1.28 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $941,436K ÷ $735,224K
= 1.28
The financial leverage ratio of AAON Inc. has shown some fluctuations over the past five years. In 2023, the ratio stands at 1.28, which indicates that the company's debt financing accounts for 1.28 times its equity financing. Comparing this to previous years, we note that the ratio was at its highest in 2022 at 1.45, suggesting a higher level of financial risk as the company had relied more on debt for its financing. In 2021, the ratio decreased to 1.39, indicating a slight reduction in the company's financial leverage. Notably, in 2020 and 2019, the financial leverage ratio was 1.28, the same as the current year, suggesting consistency in the company's capital structure during those years. Overall, the trend in AAON Inc.'s financial leverage ratio reflects varying levels of reliance on debt over the past five years, with recent years showing a more moderate approach to leverage compared to 2022.
Peer comparison
Dec 31, 2023