What is A O Smith's earnings per share (EPS)?

A O Smith (AOS) reported diluted earnings per share of $3.85 for fiscal year 2025. This represents a 6.1% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

A O Smith Financials

AOS

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

This page shows A O Smith (AOS) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 18 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Financial Profile 60/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

A O Smith has an operating margin of 19.0%, meaning the company retains $19 of operating profit per $100 of revenue. This results in a moderate score of 64/100, indicating healthy but not exceptional operating efficiency. This is up from 18.5% the prior year.

Growth

A O Smith's revenue grew a modest 0.3% year-over-year to $3.8B. This slow but positive growth earns a score of 34/100.

Leverage

100

A O Smith carries a low D/E ratio of 0.06, meaning only $0.06 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

A O Smith's current ratio of 1.50 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 25/100, which could limit financial flexibility.

Cash Flow

A O Smith has a free cash flow margin of 14.3%, earning a moderate score of 61/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns

A O Smith earns a strong 29.4% return on equity (ROE), meaning it generates $29 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 76/100. This is up from 28.3% the prior year.

Altman Z-Score Safe

8.16

A O Smith scores 8.16, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($9.1B) relative to total liabilities ($1.3B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Strong

7/9

A O Smith passes 7 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 2 leverage/liquidity signals pass, both operating efficiency signals pass.

Earnings Quality Cash-Backed

1.13x

For every $1 of reported earnings, A O Smith generates $1.13 in operating cash flow ($616.8M OCF vs $546.2M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Safe

54.0x

A O Smith earns $54.0 in operating income for every $1 of interest expense ($728.6M vs $13.5M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

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Earnings & Revenue

Revenue

$3.8B

YoY+0.3%

5Y CAGR+5.8%

10Y CAGR+4.2%

A O Smith generated $3.8B in revenue in fiscal year 2025. This represents an increase of 0.3% from the prior year.

EBITDA

$813.7M

YoY+3.5%

5Y CAGR+6.9%

10Y CAGR+4.7%

A O Smith's EBITDA was $813.7M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 3.5% from the prior year.

Net Income

$546.2M

YoY+2.4%

5Y CAGR+9.6%

10Y CAGR+6.8%

A O Smith reported $546.2M in net income in fiscal year 2025. This represents an increase of 2.4% from the prior year.

EPS (Diluted)

$3.85

YoY+6.1%

5Y CAGR+12.7%

10Y CAGR+9.3%

A O Smith earned $3.85 per diluted share (EPS) in fiscal year 2025. This represents an increase of 6.1% from the prior year.

Cash & Balance Sheet

Free Cash Flow

$546.0M

YoY+15.2%

5Y CAGR+1.6%

10Y CAGR+6.9%

A O Smith generated $546.0M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 15.2% from the prior year.

Cash & Debt

$174.5M

YoY-27.2%

5Y CAGR-21.2%

10Y CAGR-6.0%

A O Smith held $174.5M in cash against $112.7M in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

N/A

Margins & Returns

Gross Margin

38.8%

YoY+0.7pp

5Y CAGR+0.6pp

10Y CAGR-1.0pp

A O Smith's gross margin was 38.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 0.7 percentage points from the prior year.

Operating Margin

19.0%

YoY+0.5pp

5Y CAGR+1.6pp

10Y CAGR+1.2pp

A O Smith's operating margin was 19.0% in fiscal year 2025, reflecting core business profitability. This is up 0.5 percentage points from the prior year.

Net Margin

14.3%

YoY+0.3pp

5Y CAGR+2.4pp

10Y CAGR+3.1pp

A O Smith's net profit margin was 14.3% in fiscal year 2025, showing the share of revenue converted to profit. This is up 0.3 percentage points from the prior year.

Return on Equity

29.4%

YoY+1.1pp

5Y CAGR+10.7pp

10Y CAGR+9.8pp

A O Smith's ROE was 29.4% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 1.1 percentage points from the prior year.

Capital Allocation

R&D Spending

$95.0M

YoY-6.6%

5Y CAGR+3.3%

10Y CAGR+2.6%

A O Smith invested $95.0M in research and development in fiscal year 2025. This represents a decrease of 6.6% from the prior year.

Share Buybacks

$400.8M

YoY+31.1%

5Y CAGR+47.9%

10Y CAGR+12.1%

A O Smith spent $400.8M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 31.1% from the prior year.

Capital Expenditures

$70.8M

YoY-34.4%

5Y CAGR+4.5%

10Y CAGR-0.3%

A O Smith invested $70.8M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 34.4% from the prior year.

AOS Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$3.8B+0.3%	$3.8B-0.9%	$3.9B+2.6%	$3.8B+6.1%	$3.5B+22.2%	$2.9B
Cost of Revenue	$2.3B-0.8%	$2.4B-0.3%	$2.4B-2.3%	$2.4B+8.8%	$2.2B+24.7%	$1.8B
Gross Profit	$1.5B+2.1%	$1.5B-1.9%	$1.5B+11.7%	$1.3B+1.4%	$1.3B+18.3%	$1.1B
R&D Expenses	$95.0M-6.6%	$101.7M+4.3%	$97.5M+9.6%	$89.0M-5.5%	$94.2M+16.7%	$80.7M
SG&A Expenses	$759.4M+2.7%	$739.3M+1.6%	$727.4M+8.4%	$670.9M-4.3%	$701.4M+6.2%	$660.3M
Operating Income	$728.6M+3.0%	$707.7M-5.1%	$745.5M+105.9%	$362.0M-46.9%	$682.0M+35.5%	$503.2M
Interest Expense	$13.5M+101.5%	$6.7M-44.2%	$12.0M+27.7%	$9.4M+118.6%	$4.3M-41.1%	$7.3M
Income Tax	$168.9M+0.9%	$167.4M-5.4%	$176.9M+1574.2%	-$12.0M-108.7%	$138.5M+39.9%	$99.0M
Net Income	$546.2M+2.4%	$533.6M-4.1%	$556.6M+136.1%	$235.7M-51.6%	$487.1M+41.2%	$344.9M
EPS (Diluted)	$3.85+6.1%	$3.63-1.6%	$3.69+144.4%	$1.51-50.0%	$3.02+42.5%	$2.12

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Revenue	$912.5M-3.2%	$942.5M-6.8%	$1.0B+4.9%	$963.9M+5.6%	$912.4M+1.1%	$902.6M-11.9%	$1.0B+4.6%	$978.8M
Cost of Revenue	$562.1M-2.8%	$578.0M-5.9%	$614.2M+4.4%	$588.5M+2.5%	$574.3M+1.6%	$565.3M-10.0%	$628.3M+5.8%	$594.1M
Gross Profit	$350.4M-3.9%	$364.5M-8.2%	$397.1M+5.8%	$375.4M+11.0%	$338.1M+0.2%	$337.3M-14.8%	$396.0M+2.9%	$384.7M
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	$186.6M-1.2%	$188.9M-1.3%	$191.3M-0.7%	$192.6M+5.8%	$182.0M+3.1%	$176.6M-6.3%	$188.5M-1.9%	$192.2M
Operating Income	$163.0M-7.1%	$175.4M-14.9%	$206.2M+12.1%	$184.0M+24.7%	$147.5M-6.7%	$158.1M-24.1%	$208.4M+7.6%	$193.7M
Interest Expense	$2.4M-33.3%	$3.6M-21.7%	$4.6M+58.6%	$2.9M+20.8%	$2.4M+60.0%	$1.5M-16.7%	$1.8M+80.0%	$1.0M
Income Tax	$35.2M-11.6%	$39.8M-19.4%	$49.4M+11.0%	$44.5M+25.7%	$35.4M-3.0%	$36.5M-27.6%	$50.4M+11.8%	$45.1M
Net Income	$125.4M-5.0%	$132.0M-13.3%	$152.2M+11.4%	$136.6M+24.5%	$109.7M-8.7%	$120.1M-23.1%	$156.2M+5.8%	$147.6M
EPS (Diluted)	N/A	$0.94-12.1%	$1.07+12.6%	$0.95	N/A	$0.82-22.6%	$1.06+6.0%	$1.00

AOS Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$3.1B-3.0%	$3.2B+0.8%	$3.2B-3.6%	$3.3B-4.1%	$3.5B+9.9%	$3.2B
Current Assets	$1.3B-7.3%	$1.4B-7.2%	$1.5B-8.2%	$1.6B-6.8%	$1.8B+8.3%	$1.6B
Cash & Equivalents	$174.5M-27.2%	$239.6M-29.5%	$339.9M-13.1%	$391.2M-11.8%	$443.3M-22.6%	$573.1M
Inventory	$479.3M-9.9%	$532.1M+7.0%	$497.4M-3.7%	$516.4M+15.3%	$447.7M+49.2%	$300.1M
Accounts Receivable	N/A	N/A	N/A	N/A	N/A	N/A
Goodwill	$710.6M-6.7%	$761.7M+20.3%	$633.4M+2.2%	$619.7M-1.3%	$627.8M+14.8%	$546.8M
Total Liabilities	$1.3B-5.3%	$1.4B-0.9%	$1.4B-13.6%	$1.6B-3.5%	$1.6B+25.1%	$1.3B
Current Liabilities	$862.5M-3.9%	$897.2M-5.1%	$945.3M+1.2%	$934.2M-16.5%	$1.1B+26.2%	$886.3M
Long-Term Debt	$112.7M-38.5%	$183.2M+56.2%	$117.3M-64.9%	$334.5M+76.1%	$189.9M+78.5%	$106.4M
Total Equity	$1.9B-1.4%	$1.9B+2.1%	$1.8B+5.5%	$1.7B-4.6%	$1.8B-0.9%	$1.8B
Retained Earnings	$4.0B+9.7%	$3.6B+10.5%	$3.3B+12.9%	$2.9B+2.1%	$2.8B+12.6%	$2.5B

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Total Assets	$3.1B-0.9%	$3.2B-2.3%	$3.2B-0.6%	$3.3B+0.9%	$3.2B+2.7%	$3.2B-1.4%	$3.2B+0.5%	$3.2B
Current Assets	$1.3B-1.9%	$1.3B-5.2%	$1.4B-2.4%	$1.4B+2.1%	$1.4B-1.4%	$1.4B-4.6%	$1.5B+1.4%	$1.5B
Cash & Equivalents	$174.5M+14.3%	$152.7M-14.2%	$177.9M+2.8%	$173.0M-27.8%	$239.6M+9.3%	$219.3M+1.5%	$216.1M-14.1%	$251.6M
Inventory	$479.3M-5.5%	$507.3M-2.3%	$519.3M-2.5%	$532.6M+0.1%	$532.1M-4.1%	$554.9M+1.9%	$544.7M+4.3%	$522.3M
Accounts Receivable	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Goodwill	$710.6M+0.1%	$710.0M-0.5%	$713.6M+0.9%	$707.1M-7.2%	$761.7M+16.9%	$651.7M+0.2%	$650.4M-0.2%	$651.5M
Total Liabilities	$1.3B-3.1%	$1.3B-5.3%	$1.4B-0.8%	$1.4B+4.1%	$1.4B+9.6%	$1.2B-3.8%	$1.3B-1.1%	$1.3B
Current Liabilities	$862.5M+1.2%	$852.5M+1.1%	$843.0M-4.4%	$882.1M-1.7%	$897.2M+6.3%	$844.2M-3.2%	$872.4M-1.2%	$883.4M
Long-Term Debt	$112.7M-32.4%	$166.8M-41.3%	$284.2M+9.4%	$259.8M+41.8%	$183.2M+67.0%	$109.7M-15.9%	$130.4M+18.9%	$109.7M
Total Equity	$1.9B+0.7%	$1.8B-0.1%	$1.8B-0.5%	$1.9B-1.5%	$1.9B-1.7%	$1.9B+0.3%	$1.9B+1.6%	$1.9B
Retained Earnings	$4.0B+1.9%	$3.9B+2.2%	$3.8B+2.8%	$3.7B+2.4%	$3.6B+1.7%	$3.5B+2.1%	$3.5B+3.2%	$3.4B

AOS Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	$616.8M+6.0%	$581.8M-13.2%	$670.3M+71.3%	$391.4M-38.9%	$641.1M+14.1%	$562.1M
Capital Expenditures	$70.8M-34.4%	$108.0M+48.8%	$72.6M+3.3%	$70.3M-6.4%	$75.1M+32.2%	$56.8M
Free Cash Flow	$546.0M+15.2%	$473.8M-20.7%	$597.7M+86.1%	$321.1M-43.3%	$566.0M+12.0%	$505.3M
Investing Cash Flow	-$53.0M+80.2%	-$267.1M-1008.3%	-$24.1M-397.5%	$8.1M+102.3%	-$349.9M-3065.3%	$11.8M
Financing Cash Flow	-$633.1M-55.0%	-$408.4M+40.4%	-$684.7M-58.9%	-$430.8M-2.3%	-$421.0M-12.3%	-$374.8M
Dividends Paid	$195.7M+2.8%	$190.4M+3.8%	$183.5M+3.6%	$177.2M+4.2%	$170.1M+7.2%	$158.7M
Share Buybacks	$400.8M+31.1%	$305.8M-0.2%	$306.5M-24.0%	$403.5M+10.1%	$366.5M+546.4%	$56.7M

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Operating Cash Flow	$183.1M-28.3%	$255.4M+83.0%	$139.6M+260.7%	$38.7M-82.6%	$221.9M+13.3%	$195.9M+241.3%	$57.4M-46.2%	$106.6M
Capital Expenditures	$17.6M+18.9%	$14.8M-13.5%	$17.1M-19.7%	$21.3M-30.4%	$30.6M-5.8%	$32.5M+41.9%	$22.9M+4.1%	$22.0M
Free Cash Flow	$165.5M-31.2%	$240.6M+96.4%	$122.5M+604.0%	$17.4M-90.9%	$191.3M+17.1%	$163.4M+373.6%	$34.5M-59.2%	$84.6M
Investing Cash Flow	-$16.3M+53.3%	-$34.9M-487.8%	$9.0M+183.3%	-$10.8M+93.1%	-$156.0M-205.9%	-$51.0M-559.5%	$11.1M+115.6%	-$71.2M
Financing Cash Flow	-$146.5M+40.3%	-$245.5M-68.2%	-$146.0M-53.5%	-$95.1M-133.7%	-$40.7M+71.7%	-$144.0M-39.7%	-$103.1M+14.5%	-$120.6M
Dividends Paid	$50.6M+6.3%	$47.6M-1.4%	$48.3M-1.8%	$49.2M-0.6%	$49.5M+6.0%	$46.7M-0.4%	$46.9M-0.8%	$47.3M
Share Buybacks	$65.4M-22.2%	$84.1M-35.7%	$130.7M+8.4%	$120.6M+75.5%	$68.7M-18.1%	$83.9M+6.6%	$78.7M+5.6%	$74.5M

AOS Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	38.8%+0.7pp	38.1%-0.4pp	38.5%+3.1pp	35.4%-1.6pp	37.0%-1.2pp	38.3%
Operating Margin	19.0%+0.5pp	18.5%-0.8pp	19.4%+9.7pp	9.6%-9.6pp	19.3%+1.9pp	17.4%
Net Margin	14.3%+0.3pp	14.0%-0.5pp	14.4%+8.2pp	6.3%-7.5pp	13.8%+1.9pp	11.9%
Return on Equity	29.4%+1.1pp	28.3%-1.9pp	30.2%+16.7pp	13.5%-13.1pp	26.6%+7.9pp	18.7%
Return on Assets	17.4%+0.9pp	16.5%-0.8pp	17.3%+10.3pp	7.1%-6.9pp	14.0%+3.1pp	10.9%
Current Ratio	1.50-0.1	1.55-0.0	1.59-0.2	1.75+0.2	1.57-0.3	1.83
Debt-to-Equity	0.06-0.0	0.10+0.0	0.06-0.1	0.19+0.1	0.10+0.0	0.06
FCF Margin	14.3%+1.9pp	12.4%-3.1pp	15.5%+7.0pp	8.6%-7.4pp	16.0%-1.5pp	17.4%

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Gross Margin	38.4%-0.3pp	38.7%-0.6pp	39.3%+0.3pp	39.0%+1.9pp	37.1%-0.3pp	37.4%-1.3pp	38.7%-0.6pp	39.3%
Operating Margin	17.9%-0.7pp	18.6%-1.8pp	20.4%+1.3pp	19.1%+2.9pp	16.2%-1.3pp	17.5%-2.8pp	20.3%+0.6pp	19.8%
Net Margin	13.7%-0.3pp	14.0%-1.0pp	15.0%+0.9pp	14.2%+2.1pp	12.0%-1.3pp	13.3%-1.9pp	15.3%+0.2pp	15.1%
Return on Equity	6.8%-0.4pp	7.2%-1.1pp	8.3%+0.9pp	7.4%+1.5pp	5.8%-0.5pp	6.3%-1.9pp	8.2%+0.3pp	7.8%
Return on Assets	4.0%-0.2pp	4.2%-0.5pp	4.7%+0.5pp	4.2%+0.8pp	3.4%-0.4pp	3.8%-1.1pp	4.9%+0.2pp	4.6%
Current Ratio	1.50-0.0	1.54-0.1	1.65+0.0	1.61+0.1	1.55-0.1	1.67-0.0	1.70+0.0	1.65
Debt-to-Equity	0.06-0.0	0.09-0.1	0.15+0.0	0.14+0.0	0.10+0.0	0.06-0.0	0.070.0	0.06
FCF Margin	18.1%-7.4pp	25.5%+13.4pp	12.1%+10.3pp	1.8%-19.2pp	21.0%+2.9pp	18.1%+14.7pp	3.4%-5.3pp	8.6%

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Frequently Asked Questions

What is A O Smith's annual revenue?

A O Smith (AOS) reported $3.8B in total revenue for fiscal year 2025. This represents a 0.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is A O Smith's revenue growing?

A O Smith (AOS) revenue grew by 0.3% year-over-year, from $3.8B to $3.8B in fiscal year 2025.

Is A O Smith profitable?

Yes, A O Smith (AOS) reported a net income of $546.2M in fiscal year 2025, with a net profit margin of 14.3%.

What is A O Smith's EBITDA?

A O Smith (AOS) had EBITDA of $813.7M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does A O Smith have?

As of fiscal year 2025, A O Smith (AOS) had $174.5M in cash and equivalents against $112.7M in long-term debt.

What is A O Smith's gross margin?

A O Smith (AOS) had a gross margin of 38.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is A O Smith's operating margin?

A O Smith (AOS) had an operating margin of 19.0% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is A O Smith's net profit margin?

A O Smith (AOS) had a net profit margin of 14.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is A O Smith's return on equity (ROE)?

A O Smith (AOS) has a return on equity of 29.4% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is A O Smith's free cash flow?

A O Smith (AOS) generated $546.0M in free cash flow during fiscal year 2025. This represents a 15.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is A O Smith's operating cash flow?

A O Smith (AOS) generated $616.8M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are A O Smith's total assets?

A O Smith (AOS) had $3.1B in total assets as of fiscal year 2025, including both current and long-term assets.

What are A O Smith's capital expenditures?

A O Smith (AOS) invested $70.8M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does A O Smith spend on research and development?

A O Smith (AOS) invested $95.0M in research and development during fiscal year 2025.

Does A O Smith buy back shares?

Yes, A O Smith (AOS) spent $400.8M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

What is A O Smith's current ratio?

A O Smith (AOS) had a current ratio of 1.50 as of fiscal year 2025, which is considered adequate.

What is A O Smith's debt-to-equity ratio?

A O Smith (AOS) had a debt-to-equity ratio of 0.06 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is A O Smith's return on assets (ROA)?

A O Smith (AOS) had a return on assets of 17.4% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is A O Smith's Altman Z-Score?

A O Smith (AOS) has an Altman Z-Score of 8.16, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is A O Smith's Piotroski F-Score?

A O Smith (AOS) has a Piotroski F-Score of 7 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are A O Smith's earnings high quality?

A O Smith (AOS) has an earnings quality ratio of 1.13x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can A O Smith cover its interest payments?

A O Smith (AOS) has an interest coverage ratio of 54.0x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is A O Smith?

A O Smith (AOS) scores 60 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.