AAON Inc (AAON)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.43 | 1.29 | 1.36 | 1.21 | 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 |
AAON Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have remained at 0.00% throughout the five-year period, indicating that the company has virtually no debt obligations in relation to its total assets, capital structure, and shareholders' equity.
The financial leverage ratio, which measures the extent to which the company relies on debt financing, has shown some fluctuation over the years but generally demonstrates a conservative approach to leverage. The ratio peaked at 1.58 in June 30, 2022, indicating a temporary increase in debt relative to equity and assets. However, the ratio has since decreased and stabilized around 1.43 as of December 31, 2024, indicating a moderate level of financial leverage.
Overall, AAON Inc's solvency ratios reflect a prudent and sustainable financial strategy, with minimal reliance on debt financing and a strong ability to cover its financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio of AAON Inc has demonstrated significant fluctuation over the reporting periods.
As of December 31, 2020 and March 31, 2021, the interest coverage ratio was exceptionally high, indicating the company's ability to comfortably meet its interest payment obligations with its earnings. However, this ratio experienced a sharp decline by June 30, 2021, and continued to decrease steadily through the subsequent periods, signaling potential concerns regarding the company's ability to cover its interest expenses.
The interest coverage ratio hit its lowest point as of December 31, 2021 and continued to remain relatively low through the following periods. This downward trend indicates a potential strain on AAON Inc's financial stability in meeting its interest payments due to a decrease in earnings relative to its interest expenses.
Although there was a slight improvement in the interest coverage ratio by the end of December 31, 2024, it still remains relatively lower compared to the earlier periods. This suggests that AAON Inc may still be facing challenges in generating sufficient earnings to cover its interest obligations efficiently.
Overall, the fluctuating trend in AAON Inc's interest coverage ratio highlights the importance of monitoring the company's financial performance closely, especially in terms of managing its interest payment obligations effectively.