The business behind the dividend
| Measure | AAON | Median | Formula |
|---|---|---|---|
| Return on equity | 12.0% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 16.3% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $-3.78m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $-190.03m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 10.1% | 14.3% | Operating income ÷ revenue |
| Net margin | 7.5% | 10.1% | Net income ÷ revenue |
| Debt to equity | 0.00x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 8.81x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 2.63x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 0.00x | 1.66x | Operating cash flow ÷ net income |
| Accruals | 6.3% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 12.0% | 20.4% | 24.2% | 17.9% | 12.6% | 22.5% | 18.5% | 17.0% | 22.5% | 25.6% | 18.5% |
| Return on capital employed | 16.3% | 24.9% | 30.9% | — | — | — | — | — | — | — | 24.9% |
| Operating margin | 10.1% | 17.4% | 19.5% | 14.3% | 13.0% | 19.8% | 14.3% | 12.8% | 18.3% | 20.7% | 14.3% |
| Net margin | 7.5% | 14.0% | 15.2% | 11.3% | 11.0% | 15.4% | 11.4% | 9.8% | 13.3% | 13.9% | 11.4% |
| Debt to equity | 0.00x | 0.02x | 0.00x | — | — | — | — | — | — | — | 0.00x |
| Current ratio | 2.63x | 2.79x | 3.23x | 2.40x | 2.51x | 3.73x | 3.35x | 2.96x | 3.07x | 3.61x | 2.96x |
| Cash conversion | 0.00x | 1.14x | 0.89x | 0.61x | 1.04x | 1.63x | 1.82x | 1.30x | 1.08x | 1.20x | 1.08x |