AAON Inc (AAON)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.08 | 0.08 | 0.10 | 0.09 | 0.10 | 0.14 | 0.09 | 0.06 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.00 | 0.00 | 0.00 |
| 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 |
| Debt-to-equity ratio | 0.00 | 0.11 | 0.12 | 0.14 | 0.13 | 0.15 | 0.22 | 0.14 | 0.09 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.28 | 1.38 | 1.41 | 1.42 | 1.45 | 1.50 | 1.58 | 1.49 | 1.39 | 1.29 | 1.31 | 1.30 | 1.28 | 1.28 | 1.33 | 1.29 | 1.28 | 1.26 | 1.29 | 1.23 |
The solvency ratios provide insights into AAON Inc.'s ability to meet its long-term obligations.
1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets financed by debt. AAON Inc.'s debt-to-assets ratio has been relatively stable, ranging between 0.05 and 0.10 over the past eight quarters. A lower ratio indicates less reliance on debt to fund operations, suggesting a strong financial position.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the proportion of the company's capital structure financed by debt. AAON Inc.'s ratio has also remained consistent, fluctuating between 0.06 and 0.12. The stable ratio indicates a balanced capital structure with a reasonable level of debt.
3. Debt-to-equity ratio: This ratio compares the amount of debt to shareholders' equity, providing insight into the company's leverage. AAON Inc.'s debt-to-equity ratio has shown a similar trend to the debt-to-capital ratio, staying within the range of 0.07 to 0.14. The company has maintained a moderate level of leverage, with a higher ratio indicating higher financial risk.
4. Financial leverage ratio: The financial leverage ratio measures the company's total assets relative to its equity, indicating the extent to which the company relies on debt financing. AAON Inc.'s financial leverage ratio has fluctuated within a narrow range between 1.28 and 1.58. A lower ratio signifies lower financial risk and less dependence on debt financing.
Overall, AAON Inc. appears to have a prudent approach to managing its solvency, maintaining consistent and moderate levels of debt across the various solvency ratios. This suggests a stable financial position with a balanced capital structure and adequate capacity to meet its long-term obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2,774.32 | 3,091.29 | 3,374.89 | 3,440.86 | 2,947.93 | 1,945.59 | 1,569.16 | 1,677.32 | 1,610.53 | 2,082.05 | 2,221.44 | 2,151.21 | 2,368.28 | 1,024.16 | 1,026.08 | 1,096.54 | 1,015.32 | 310.77 | 336.95 | 322.80 |
The interest coverage ratio for AAON Inc. has shown fluctuation over the past eight quarters. The ratio indicates the company's ability to meet its interest obligations with its operating income.
The interest coverage ratio has ranged from a low of 39.73 in Q2 2023 to a high of 227.90 in Q1 2022. This suggests that the company's ability to cover its interest expenses decreased in Q2 2023 compared to previous quarters. However, the ratio remained relatively high, indicating a strong ability to meet its interest payments.
The decreasing trend in the interest coverage ratio from Q1 2022 to Q2 2023 may warrant further investigation to understand the factors contributing to the decline. Overall, while the company's interest coverage ratio has fluctuated, it has generally remained at levels indicating a strong ability to cover interest expenses with operating income.