AAON Inc (AAON)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 229,849 | 241,434 | 127,160 | 69,314 | 95,358 |
| Interest expense | US$ in thousands | 2,905 | 4,843 | 2,627 | 132 | 13,095 |
| Interest coverage | 79.12 | 49.85 | 48.41 | 525.11 | 7.28 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $229,849K ÷ $2,905K
= 79.12
AAON Inc's interest coverage ratio has shown fluctuations over the years based on the provided data. As of December 31, 2020, the interest coverage ratio was 7.28, indicating the company's ability to cover its interest expenses 7.28 times with its earnings before interest and taxes.
The ratio significantly improved to 525.11 as of December 31, 2021, reflecting a substantial increase in the company's ability to meet its interest obligations from operating profits. However, the interest coverage ratio decreased to 48.41 as of December 31, 2022, pointing to a potential reduction in the ability to cover interest expenses compared to the previous year.
Similarly, the interest coverage ratio was 49.85 as of December 31, 2023, which was slightly higher than the previous year. Finally, as of December 31, 2024, the interest coverage ratio increased to 79.12, marking an improvement from the previous year.
Overall, while there have been fluctuations in AAON Inc's interest coverage ratio over the years, a general trend of maintaining a solid ability to cover interest expenses with operating profits can be observed based on the data provided.
Peer comparison
Dec 31, 2024