AAON Inc (AAON)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 229,849 | 261,668 | 255,049 | 238,373 | 231,788 | 210,271 | 182,268 | 148,038 | 126,749 | 85,925 | 69,289 | 73,867 | 69,284 | 83,078 | 89,209 | 85,932 | 95,511 | 97,721 | 86,471 | 81,802 |
| Interest expense (ttm) | US$ in thousands | 2,905 | 2,581 | 2,756 | 3,932 | 4,843 | 4,892 | 4,580 | 3,587 | 2,627 | 1,815 | 871 | 325 | 135 | 16 | 6 | 2 | 2 | 66 | 66 | 66 |
| Interest coverage | 79.12 | 101.38 | 92.54 | 60.62 | 47.86 | 42.98 | 39.80 | 41.27 | 48.25 | 47.34 | 79.55 | 227.28 | 513.21 | 5,192.38 | 14,868.17 | 42,966.00 | 47,755.50 | 1,480.62 | 1,310.17 | 1,239.42 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $229,849K ÷ $2,905K
= 79.12
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. For AAON Inc, the interest coverage ratio has shown significant fluctuations over the years.
In the first quarter of 2020, the interest coverage ratio was very high at 1,239.42, indicating a strong ability to cover interest payments. This ratio increased further in the following quarters, reaching a peak of 47,755.50 in the fourth quarter of 2020, suggesting a substantial improvement in the company's ability to service its debt.
However, from the first quarter of 2021 onwards, there was a sharp decline in the interest coverage ratio, dropping to 60.62 by the first quarter of 2024. This decline may indicate a decreased capacity to cover interest expenses relative to the earlier periods.
Overall, the interest coverage ratio for AAON Inc has been volatile, showing periods of both very strong and comparatively weaker ability to cover interest payments. Investors and creditors may need to monitor this ratio closely to assess the company's financial health and debt servicing capabilities.
Peer comparison
Dec 31, 2024