AAR Corp (AIR)

The analysis of AAR Corp’s Days of Sales Outstanding (DSO) over the period from May 31, 2021, to May 31, 2025, indicates a consistent upward trend in the company's collection period. Specifically, the DSO increased from 52.71 days in 2021 to 57.68 days in 2022, representing an approximate 9.3% rise. The increasing trend continued into 2023, with the DSO reaching 60.18 days, which denotes a further extension of accounts receivable collection cycles by approximately 4.3%.

This upward trajectory persisted into 2024 and 2025, with DSO figures reaching 64.60 days and 64.99 days, respectively. The overall growth from 2021 to 2025 is approximately 23.2%, indicating a lengthening of the average collection period by nearly 12 days over four years.

The process of accounts receivable collection has become progressively slower, as reflected by the incremental increases in DSO. Such a trend could imply a relaxation in credit terms, increased difficulty in collection efforts, or shifts in customer payment behaviors. It may also impact the company's cash flow and liquidity management, suggesting the need for further analysis regarding credit policies or collection procedures.

In summary, the data reveals that AAR Corp's collection cycle has been gradually extending over the analyzed period, which warrants monitoring to assess potential impacts on operational efficiency and financial stability.

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May 31, 2025